China has been on a mission to eradicate cryptocurrencies from its market since September 2017, and new, more severe, bans will make it increasingly difficult for anyone in the Chinese mainland to access cryptocurrency exchange platforms. Despite the government’s intentions, Chinese citizens still participate in the industry using methods like over-the-counter Bitcoin trading.
Bitcoin’s power to infiltrate Chinese markets, despite several bans instilled against it, is perhaps what motivated the Chinese government to implement a new ban which will effectively block all China-based users from accessing any online cryptocurrency platform. China’s severe online policies, known as The Great Firewall of China, has previously blocked its citizens from accessing social media websites such as Twitter and Facebook, and will now include cryptocurrency trading exchanges.
According to a publication endorsed by the Chinese Central Bank, the People’s Bank of China, and Financial News, Chinese authorities intend to implement even more restrictive measures. The publication asserts that, despite previous bans and the closure of all domestic cryptocurrency exchange platforms, China remained active in the industries by using international exchanges to participate in the market. Chinese users have successfully evaded detection while continuing to participate in a market that is known for its risk and volatility.
Following China’s crypto crackdown of 2017, most Chinese exchanges opted to move their companies to places such as Hong Kong, Japan, or Singapore. Despite this move, the websites still ensured that Chinese users could view the website in their own language and that the websites offered them plenty of support to make discreet transactions. The government is now planning to completely block access to these websites.
The Great Firewall of China operates by blocking access to certain targeted sites as well as those containing certain flagged keywords. While Chinese techies might still access restricted web content by using virtual private networks (VPNs), this practice also seems doomed as Chinese internet service providers have been on their own crusade to eradicate VPN access within Chinese borders.
For now, it seems like the government is well on its way to eradicating cryptocurrencies from its economic sphere, and the only solution could be a truly decentralized exchange which cannot be blocked, restricted, or governed.
