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China To Crack Down On International Cryptocurrency Trading By Its Citizens

China To Crack Down On International Cryptocurrency Trading By Its Citizens

"It is common for people to use VPNs [virtual private networks] to trade cryptocurrencies, as many exchange platforms relocated to Japan or Singapore", said Donald Zhao, an individual bitcoin trader who relocated to Tokyo from Beijing late a year ago, following the ban.

China will block all cryptocurrency or ICO related websites on platforms based overseas in an attempt to completely quash the market.

Three US-based lenders decided not to accept credit card payments for cryptocurrency purchases, while news from China said the country will enforce its exchange ban on worldwide companies that still support Chinese traders.

Instead, many traders turned to foreign exchanges to make cryptocurrency transactions.

China has become the latest nation to attempt to cripple crypto-coin trading within its borders.

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"Overseas transactions and regulatory evasion have resumed ... risks are still there, fueled by illegal issuance, and even fraud and pyramid selling", the article said. In September, Shanghai-based bitcoin exchange BTCC announced the closure of its China trading operations. But some exchanges simply relocated to nearby markets, while Chinese traders employed services like VPN's to circumvent bans. From the onset, China has been competing to be number one in mining Bitcoin and is the largest producer of mining hardware in the world.

Chinese exchanges lift their suspension on withdrawals of cryptocurrencies. But for many people, Bitcoin and all other coins are still profitable, even after market caps of all digital coins have dropped back down to early-December levels.

Cao added that most of the Chinese ICO's, are invested in by Chinese investors, so a complete cryptocurrency shutdown would drag the entire cryptocurrency market down. "Already feeling delicate, then, bitcoin was dealt another major blow this Friday, plunging 10.5% to 8,000 following reports that the US Commodity Futures Trading Commission is investigating the cryptocurrencies ludicrous end of 2017 rise for signs of market manipulation".

The country did not ban all crypto trading, however did tighten regulations on anonymous trading, and has set the tone for other countries looking to crackdown on the cryptocurrency market.