A relatively well-known cryptocurrency exchange, BISS, has recently been shut down by police in Beijing. At least 10 people have been arrested.
According to Wan (@DoveyWan), this news has been circulating in China for a couple of weeks and is only now being revealed to the West, though it is unclear why. As evidence, Wan links a sohu.com article, describing the event.
(which is known in Chinese crypto community for 2 weeks btw the “news” is just out)
A Beijing based crypto exchange BISS is arrested by local police (it’s a relatively known up-and-rising exchange) https://t.co/DRyOlyaTpm
Over 10 ppl have been arrested
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) November 22, 2019
China’s Attack on Cryptocurrency Continues
The linked article seems to promote that this is part of a broader effort by government authorities to “prevent the recurrence of illegal financial activities in virtual currency transactions and effectively protect the interests of investors…” To further emphasize that the BISS shut down was done for the public good, the article ends with “It is hoped that investors will be vigilant against the above-mentioned illegal financial activities, report relevant illegal violations in a timely manner, and beware of being deceived.”
This news comes hot on the heels of the recent report that the People’s Bank of China (PBoC) is tightening its regulations on all forms of cryptocurrency trading. It may not come as a surprise then that this news has made it out around the same time. Of course, in recent weeks and months, China has been fairly vocal about its stance of “blockchain not Bitcoin,” and has even gone so far as to air an hour-long television program making it clear it does not support cryptocurrencies. This also comes as new programs are being tested in parts of the nation to limit the size of unregulated cash transactions.
Another Case of China FUD?
Not everyone felt this news carried gravity to it. Some questioned whether this BISS shut down was actually a real report, while others brought up the ongoing trend for China-based FUD to spread around crypto twitter regardless of its veracity.
This is from which year?
— Mikael (@Mikaeltz) November 22, 2019
China bans Bitcoin again
— R0b5ter (@R0bster1) November 22, 2019
Assuming the report is accurate, it sounds like China is making good on its promises to crack down on what the government has deemed “illegal” cryptocurrency trading. If this continues, it is plausible we will see more exchanges shut down in the coming months, but it is impossible to say how quickly. Clearly China is not acting in the interest of most decentralized asset enthusiasts, and it doesn’t look like this is going to change.
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