China is escalating its clampdown on cryptocurrency trading in a bid to finally quash the market completely. Beijing’s tougher stance will target overseas platforms that offer exchange-like services to mainlanders and allow them to trade the digital assets.
Bloomberg quoted unnamed sources on Wednesday afternoon as saying the authorities would tighten regulations on its citizens’ participation in overseas transactions. The new rules are intended to “scrutinize the Chinese bank and online-payment accounts of businesses and individuals suspected of facilitating trades on offshore cryptocurrency venues,” the sources said.
As a result of that decision, Chinese regulators may also step up measures to freeze assets or block accounts of identified participants from the nation’s financial system.
After clamping down on the domestic trading of virtual coins, the government plans to close the few remaining loopholes in order to entirely restrict its citizens from transacting cryptocurrencies or participating in ICOs held abroad.
The move is an acknowledgement of the fact that recent attempts to stamp out the crypto frenzy by shutting down service providers at home have failed to completely eradicate the mania that has been sweeping China.
China’s raid on the digital asset class, which started in September 2017, failed to dampen local investors’ enthusiasm, as many have resorted to online payment accounts and P2P venues to get around the crackdown.