The Chinese authorities continue to put pressure on the crypto community, restricting citizens from investing and withdrawing funds abroad. In May, the State Council banned financial organizations from storing and making payments in cryptocurrency, and the National Development and Reform Commission proposed a plan to completely eradicate mining in China.
On September 24, the list of restrictions was expanded:
Provision by banks and financial organizations of any crypto services, including settlements of organizations in any way related to cryptocurrencies;
Conducting commercial activities with cryptocurrencies, whether it is sale, exchange or information support;
Fundraising, donations in cryptocurrency;
Provision of services by foreign crypto exchanges to residents of China;
Any advertising of cryptocurrencies, including monitoring and “early warning” for its detection (for this, “constant backup of mentions of mining” should be carried out).
This is not a complete list of restrictive measures that has been published. This time, not only legal entities, but also individuals were subjected to pressure. In particular, technical, marketing and other support of foreign cryptocurrency exchanges is called illegal activity.
In fact, the mention of cryptocurrencies can only be submitted in a negative, “incriminating” way – for this, instructions have been sent to all departments and industry associations to inform the public about the illegality and harm of cryptocurrencies.
Bitcoin reacted with restraint to the new restrictions, the history of which begins in 2013, and has already regained its position. But the tokens of decentralized exchanges received a strong boost: the daily growth of UNI was 22%, and SUSHI – 18%.
The Chinese authorities prohibit financial organizations from working with their citizens in the field of cryptocurrencies, but they are unable to limit the p2p market, which is dominated by decentralized exchanges (DEX), such as Uniswap. In fact, it is an exchange between people through an independent protocol. There is no center that can be banned or restricted in operation. The head of the research department at Synergia Capital believes that the world is waiting for a big rotation into everything decentralized.
Huobi, the largest exchange by the number of registered Chinese, announced on September 26 that by the end of the year it will close all user accounts from China. Some of them will switch to DEX, which will provide additional support for UNI and SUSHI tokens. At the same time, Justin Sun (founder of Tron) notes that the new restrictions will not have a big impact on the market, since citizens still have the right to buy, sell and exchange cryptocurrencies.