Investors Rushing to Figure Out How to Cash Out Investments after Chinese Crypto Ban - Forex News by FX Leaders
China's Services Sector Grows For Sixth Consecutive Month

Investors Rushing to Figure Out How to Cash Out Investments after Chinese Crypto Ban

Posted Thursday, September 30, 2021 by
Timothy St. John • 2 min read

While most of China’s regulatory action on cryptocurrency happened late last week, cryptocurrency account holders are struggling to find ways to offload their digital assets. The Chinese government is working quickly to close off loopholes left in the cryptocurrency market within the country.

Last week, they shut down access to a number of major platforms on the country’s Internet services. TradingView, Coin Gecko, CoinMarketCap and others were blocked by the government’s firewall. This is a continuation of the bans that started in May of this year and have continued since then. It began with a ban of Bitcoin mining in the country that moved province by province.

After that government action swept through the nation and forced miners to close down or move out, the Chinese government turned its attention to cryptocurrency trading platforms. This has given cryptocurrency coin holders few options for cashing out their remaining assets.

Millions of dollars in cryptocurrency coins have been cashed out since the ban started, and as the government cracks down on cryptocurrency nationwide, time is running out for those who want to exchange their cryptocurrency for something still viable within China.

Confusion Reigns in China’s Financial Markets

The People’s Bank of China announced that practically all digital asset business has to cease and has been deemed illegal. This has cut off the pipeline of international cryptocurrency exchange between China and the rest of the world. Investors trying to exchange currency abroad through China could be penalized.

Because a lot of the government regulatory action has happened piecemeal, it is very difficult for investors to determine when the cutoff date is. The Bitcoin mining ban took months to take full effect, and it is difficult to say at this point how long it will take for digital markets to close off entirely throughout all of China. It is clear, however, that it is becoming more difficult to find ways to cash out cryptocurrency and exchange it for something else.

No one can say yet when crypto transactions will stop completely, though some speculate that the date of the People’s Bank notice is the official date. This is especially affecting listed companies, which are struggling to comply with the government’s regulations while retaining their account holdings. There has not been much clarity provided by the Chinese government since the initial announcement.

A Lack of Options

Chinese citizens have been using financial loopholes for years to invest outside the country and exchange currency through channels that are not approved officially. However, with the current crackdowns in government regulation, even that is becoming harder and harder to do. Virtual currencies were one of the most common ways investors would send money out of the country and receive money from abroad for their investments, but they would also use peer to peer options, M&A games, and more. The government is cracking down on all of that.

 

 

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