Cryptocurrencies Cause No More Risks to China's Economy, Blockchain Advisor Says

Cryptocurrencies Cause No More Risks to China's Economy, Blockchain Advisor Says

Date: Fri, 07/06/2018 - 19:29 / source:Yicai
Cryptocurrencies Cause No More Risks to China's Economy, Blockchain Advisor Says
Cryptocurrencies Cause No More Risks to China's Economy, Blockchain Advisor Says

(Yicai Global) July 6 -- The volatility brought by cryptocurrency trading platforms, such as Huobi and Binance, pose no more risks to the domestic economy, a dean from a blockchain institute under the central bank says.

China has stepped up its financial overhaul to block 88 virtual currency trading platforms and 85 initial coin offering platforms, as well as carried out a series of targeted measures to stop service providers from conducting business through overseas servers, online news portal Cnstock reported, citing Zhang Yifeng, dean of the Blockchain Research Institute at the China Banknote Printing and Minting.

Authorities have frequently interviewed non-bank financial firms, such as Alibaba Group Holdings's payment platform Alipay, which has closed about 3,000 accounts that have tried to perform virtual currency transactions.

Regulators have also partnered with public security organs to crack down on the almost 300 related cases involving criminal activities such as illegal fundraising, fraud, and pyramid schemes.

After the country started reining in money involved in cryptocurrency trading, the global proportion of bitcoin traded in the Chinese yuan has fallen from over 90 percent to less than 1 percent, according to Zhang.

Editor: Emmi Laine 

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Keywords: Cryptocurrency, ICO, Alipay, Binance, Huobi, Bitcoin, BLOCKCHAIN, Blockchain Research Institute, China Banknote Printing and Minting