China Blocking Virtual Currency Web Domains

Published Tuesday, February 06, 2018 - Online-Casinos.com
China Blocking Virtual Currency Web Domains

The rise and fall of crypto currencies is dependent on a number of factors and the online gambling industry is watching all them closely because each one can affect the value of virtual money and the success of the operator.

Recently it has been reported that the Chinese government has now focused on websites that deal with crypto currencies using the Great Firewall of China to stop the activity. It was revealed that financial regulators in mainland China are building “a list of measures” to halt the trading of crypto currencies. Those measures include “dealing with domestic and international websites.”

The People’s Bank of China (PBOC) affiliated publication Financial News said the decision “to remove any onshore or offshore platforms related to virtual money trading or initial coin offerings” was made “to prevent financial risks.” The article continued, “Overseas transactions and regulatory evasion have resumed,” “Risks are still there, fueled by illegal issuance and even fraud and pyramid selling.”

Last year, digital currency exchanges in China halted Bitcoin and litecoin withdrawals on their platforms in an effort to improve anti-money laundering capabilities and prevent “illegal transactions.” The extension of the firewall in China for sites related to virtual funds trading is a move that was initially started back in January of 2017. That’s when China’s Ministry of Industry and Information announced a program to “clean up” the internet. The action made it even more difficult for Chinese residents to access content the government feels is damaging to Chinese citizens including internationally licensed online gambling sites.

Chinese traders however found a way to circumvent the upgrades by moving their operations to offshore platforms even after Beijing outlawed domestic crypto currency exchanges and fundraising activities. The article in the Chinese media also revealed, “ICOs and virtual currency trading did not completely withdraw from China following the official ban … after the closure of the domestic virtual currency exchanges, many people turned to overseas platforms to continue participating in virtual currency transactions.”

 

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