China to ‘maintain a high-pressure situation’ on crypto, official says

China to ‘maintain a high-pressure situation’ on crypto, official says

China has reportedly doubled down on its crypto crackdown with a public reminder stating that Bitcoin (BTC) and other virtual currencies “are not legal tender and have no actual value.”

In a local media briefing, Yin Youping, the deputy director of the Financial Consumer Rights protection bureau of the People's Bank of China (PBOC), said the central bank will maintain a “high-pressure situation” and continue to crack down on virtual currency-related transactions.

At the briefing session, which was coincidently held during China’s “Financial Knowledge Popularization Month,” Youping stated that virtual currency-related transactions are pure investment hype. Youping said that the public should increase their risk awareness, and stay away from crypto investments.

Despite the government’s continued prosecution of the crypto industry, Youping cited the possibility of a rebound in crypto trading operations in China. As a countermeasure, the PBOC will work with local authorities to detect traders using offshore crypto exchanges, and as a result, will increase efforts to block trading websites, apps and corporate channels.

The PBoC is reportedly working with the China Banking and Insurance Regulatory Commission to develop systems for monitoring and combating the use of virtual currencies.

In addition to the pressures laid down by the PBoC, local governments in China have also started taking proactive measures to stop crypto activities. Regulators from Yingjiang County have asked hydropower plants to cut the power supply for crypto miners in the area.

Powerplants have also been asked to notify the National Development and Reform Commission after delisting crypto miners from their respective grids. While Chinese miners continue to settle abroad in countries with crypto-friendly regulations, China has reportedly started to redirect the saved electricity to build infrastructure for electric cars.

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