A number of China-related news items have been circulating in the press in recent days, largely with negative effects on the crypto market.
China’s technology capital Shenzhen has issued a warning against illegal cryptocurrency activities. Shenzhen’s leading group for financing Internet financing risks will investigate and collect evidence of such activities.
The regulator said the recent approval of blockchain technology by the central government has reinvigorated cryptocurrency speculation. Apparently, the number of illegal activities related to cryptocurrencies in the region has also increased.
These include the issuance of crypto assets, ICOs, fictitious uses of technology, fund raising in fiat or crypto and cryptocurrency exchange platforms.
Blockchain as a marketing method has negative effects on the crypto market
A few days ago, an official report said that less than 10% of Chinese companies use blockchain technology. Apparently, over 32,000 companies are using the concept to attract customers. The report also includes a warning that authorities’ controls over such situations will be stepped up.
On November 21, unconfirmed news emerged that Shanghai’s Binance office had been shut down following a police raid. Local sources at The Block claimed that between 50 and 100 employees were forced to relocate to Singapore as a matter of urgency.
The crypto market reacted negatively, with the price of Bitcoin falling below $ 7,000, mainly due to activity in Asian markets.
Later, Binance officially denied the existence of both an office in China and the raid in question and said he would give them judgment the ones at The Block. Unfortunately, the damage has already been done – the crypto market is at a point of instability. Negative news from China has pushed cryptocurrencies on a downward trend that does not appear to be reversing any time soon.