The Communist Party of China has cracked down hard on the use or mining of cryptocurrencies in the oppressive totalitarian regime declaring the competing currencies illegal as tender. According to a memo from the People’s Bank of China, they claim to be acting out of concern over cryptocurrencies “disrupting economic and financial order, breeding illegal and criminal activities such as gambling, illegal fund-raising, fraud, pyramid schemes, and money laundering, seriously endangering the safety of people’s property.” Given that a number of online services and a growing number of brick and mortar establishments globally have been mainstreaming the acceptance of cryptocurrencies this bears the hallmarks of an effort to stabilize the Chinese official currency the Renminbi against competition from an alternative out of the government’s control.
“Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity,” the central bank said.
“Financial institutions and non-bank payment institutions cannot offer services to activities and operations related to virtual currencies,” the central bank said, reiterating past comments.
China To Monitor Transactions To Ensure Compliance
In May, China’s efforts to ban bitcoin mining made international headlines and this latest development is no different. NASDAQ has explored in a recent piece that China’s increasingly autocratic efforts rather than harming bitcoin significantly, instead demonstrates the CCP’s weakness to one of the most recent and pure expressions of Capitalism, they wrote: “Overall, China’s renewed ban on Bitcoin betrays their complete inability to stop it.” Most disturbingly the PRC is ramping up the surveillance of it’s own people in order to facilitate the crackdown.
The PBOC warned the Chinese people that,
“According to the clues transferred by the financial management department, the competent authorities of network information and telecommunications shall promptly shut down Internet applications such as websites, mobile applications, and small programs that carry out virtual currency-related business activities in accordance with the law.”
The efforts of the PBOC to crack down upon and track cryptocurrency use rings very familiarly to the reported intentions of the Biden-Harris regime to allow the IRS to track any transaction of $600 or more. While the ultimate purposes are different, the level of instruction that the Democrat-Socialists in power are calling for are so firmly in line with that already in place under Beijing that they are nearly indistinguisable.