On July 6th the central Bank of China announced the shutdown of a firm, suspected to be providing cryptocurrency services.
Also, the Beijing office of People’s Bank Of China issued a statement where it ordered all the institutions to not provide services related to crypto or any virtual currency including their marketing or production. Moves like this against digital currencies are new for the Chinese government.
In 2013 the Chinese government ordered all the third-party payment providers to stop the use of bitcoins. And in 2017, The government also stopped the token sales and pledged to continue targeting all the cryptocurrency exchanges in 2019.
Every time China tried to lash out at the crypto industry in the past, their effect did not last long and rules got soft eventually.
This time, the story is a little different.
China’s Increased Attack On Crypto Industry In 2021
In 2021 Chinese government banned all the payment companies and financial institutions that were dealing in crypto-related services. And in July, people who were using cryptocurrencies, even after giving the warning, were arrested on a large scale. In that same month, the authorities also pressured payment businesses and banks to stop providing all types of crypto services.
They also suspended all the crypto-related accounts on Twitter, Weibo, and many other social media and networking platforms. Unfortunately, till July, half of the world’s bitcoin producers have gone dark because of the Chinese crackdown on bitcoin trading and mining.
“The Chinese government is doing everything in their hands to make sure that all the cryptocurrencies disappear from their economy and financial systems,” said Fred Thiel, member of Bitcoin Mining Council.
But a very important question still remains unanswered – why is China making all such moves?
Let’s find out:
Why Has China Declared This War Against Cryptocurrencies?
You might be having this question from the start itself: why has China declared war against cryptocurrencies in 2021?
According to one theory, this war has to do something with the 100th anniversary of the Chinese Communist Party. According to another theory, China is clearing the runway for its own digital Yaun. It’s a kind of Central Bank digital currency that has been in the development process since 2014. This war might be their way to ensure adaptation of this digital currency in order to gain 100% surveillance over the financial surveillance activities. But do all these moves that China has been making for so long have any impact on the price of cryptocurrencies worldwide? It’s time to discover:
Impact Of China’s Crackdown On Crypto’s Prices
When we talk about the Chinese War on crypto – the effect of any of their moves is minimum on global digital currencies. Despite the acceleration of this crackdown by China, bitcoins and other currencies are performing pretty well against it by staying flat. This has a very simple meaning that the market has digested all these moves. And according to expert traders, all these actions by China will, in fact, help cryptocurrencies in the long term.
If the goal of China is to kill all the cryptocurrencies by shutting down their production and decreasing their trade – it’s not working for them at all.
Instead, cryptocurrency has successfully proved its residency. Crypto traders are more impressed and interested in investing in cryptocurrencies than they were before. So if you are not sure about whether to invest in cryptocurrencies because of this Chinese war – we hope that now you have a clearer idea!
However, we just have one suggestion: if you are new to the world of crypto, start with small amounts, hence – crypto penny stocks. These stocks are less expensive and can benefit you in the long run. Here are the top 5 best penny stocks, suggested by experts, that you can add to your watchlist:
#1: Arvana Inc. (OTCPK: AVNI)
#2: LM Funding America, Inc. (NASDAQ: LMFA)
#3: Good Gaming, Inc. (OTCPK: GMER)
#4: BLOK Technologies Inc. (OTCPK: BLUFF)
#5: CurrencyWorks Inc. (OTCQB: CWRK)
All these penny stocks have high chances to experience a good rise, in the near future. So it’s worth adding them to your watchlist. If you want to know why these stocks have high chances to rise, read this article – best crypto stocks to buy right now by trading expert Tim Sykes.
Final Words
So the conclusion is – despite the many attacks of china on the crypto sector, investors and traders were not affected much. This means they are still safe and reliable investments. And if you consider investing in crypto stocks, make sure to consider the above options.
