- Colin Wu, a China crypto reporter, said the Chinese government could implement even stronger restrictions or even ban stablecoins.
Due to the collapse of the Terra network, China’s media source, the Economic Daily, has indicated that the Chinese government may impose even tighter restrictions on cryptocurrencies. The source described how the algorithm stablecoin TerraUSD and LUNA network works. It took advantage to support China’s move to ban cryptocurrency.
Chinese government-owned media Economic Daily said that affected by the Luna incident, the Chinese government should introduce regulatory measures for the risk of stablecoins to further reduce the space for related illegal and criminal activities. https://t.co/KiH24FSEjh
— Wu Blockchain (@WuBlockchain) May 31, 2022
Report said that Zhou Maohua, a researcher at the China Everbright Bank stated
In the future, our country will also speed up the completion of regulatory shortcomings, and introduce targeted regulatory measures for the risk of stablecoins to further reduce the space for virtual currency speculation, illegal financial activities, and related illegal and criminal activities, and better protect the property safety of the people.
China’s Moves in Crypto Banning
China had an unstable relationship with the virtual currency and in mid-2021, the Chinese government has been hardening its rules and regulations on cryptocurrency after banning crypto exchanges in 2017. Many government authorities have issued warnings about the risks of investing in cryptocurrency.
And in September 2021, The People’s Bank of China stated that cryptocurrency users will be considered as a criminal. After consideration of Bitcoin values, On May 12, the Shanghai High Court announced that Bitcoin will be protected under Chinese law by property rights.
After the previous restrictions on cryptocurrency, the use of VPNs among Chinese traders to access cryptocurrency has increased, with this, traders will access foreign exchanges or peer-to-peer (P2P) networks for their crypto activities
Next month STEPN will discontinue offering GPS services to users whose IP address or GPS location indicates that they are in China. Players who hold the membership like shoe non-fungible token (NFT) will be unable to earn tokens for their steps.
