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China's Cover-Up for Cracking Down on Cryptocurrency
China's Consumer Protection Ministry is coming down hard on what they say are pyramid schemes involving cryptocurrency.
The Chinese government is taking an aggressive stance on pyramid schemes.(SAIC CHINA) This also includes cryptocurrency, which by its mechanics is not a pyramid scheme. In my view, it is the exact opposite: taking value from the top down while simultaneously stifling inflation.
Cryptocurrecy and Blockchain technology have been making an aggressive push into mainstream society. Governments all over the world are taking notice in an effort to protect the value of their fiat currencies -- some more aggressively than others.
China is leading the world in this aggression, attempting to put a stop to cryptocurrecy trading and other potential investments that threaten their fiat currencies' stability.(SAIC CHINA) Their aggression is masked as the country's attempt to protect the citizens from pyramid schemes and other forms of fraud, but it is clear they are using this as a cover to take down cryptocurrency.
These attacks on exchanges and the citizens who participate in trading of cryptocurrency by the Chinese government have huge potential to slow the growth that has been seen in recent months in the digital currency community. This could possibly contribute to the fall of bitcoin, and the blockchain technology that accompanies it.
Led by China's SAIC, which is the country's State Administration for Industry and Commerce, the all-out attack on cryptocurrency has been made clear by the Chinese government.
Based on the enforcing of these newly implemented laws, the Chinese government stated that, "The public security organs and industrial and commercial departments of the country will continue to carry out special rectification in key areas and key areas, concentrate on destroying the pyramid selling organizational system, severely punishing the members of the pyramid selling field, annihilate and destroy the network pyramid selling and criminal activities, earnestly safeguard the legitimate rights and interests of the general public as well as the economic and financial Order, better service economy and society sustained and healthy development." (SAIC CHINA)
The U.S. Federal Reserve Board, which has yet to make a clear statement clarifying if they will allow or regulate cryptocurrecy trading in the United States, is allowing countries like China and South Korea to establish legal arguments in the effort to shut down cryptocurrency trading in many countries.
This is giving the citizens of many other countries a dangerous road to follow in their efforts to achieve what they believe is financial freedom. This is clearly what the Chinese citizens and other citizens of the world want. Japan has taken a clear stance on cryptocurrecy, allowing their citizens to trade with strict regulations put in place is a model to study. CNBC
The Chinese government justifies its actions with statements like this one made by the Chinese Protection Ministry, promising to, "earnestly safeguard the legitimate rights and interests of the general public," (SAIC CHINA) when it is clear that citizens of Chinese market, which is among the top three countries in the world for digital currency trading (with the U.S. and South Korea) want the freedom to utilize this technology.