Despite the fact that many are used to it and many others even laugh at it, it is hard to ignore the crypto crackdown in China.
In 2013, China started cracking down on cryptocurrency. Since then, reports have been coming in like clockwork regarding China banning something related to crypto on a daily basis. Therefore, it is understandable how everyone thought this would be the same. However, this time it is very different.
Chinese Communist Party members reminded crypto companies and banks in China that they were serious about the bans.
Due to this fear factor, the Chinese Agricultural Bank said that it would implement a due diligence process to identify cryptocurrency transactions.
Now in such cases, bank accounts may even be suspended if there is suspected cryptocurrency activity.
Although there are no crypto companies active in China, there are gateways available for Chinese users to swap Chinese currency for crypto. After that is done traders can use Binance or any other similar exchange. Due to the stricter regulations now, this is not allowed which could eventually lead to the suspension of their banking privileges.
It gets more serious than just losing bank privileges though anyone involved in a flagged cryptocurrency transaction could be permanently downgraded in China’s “social credit” system, which could result in a number of lost privileges in day-to-day life.
There has always been China FUD almost as early as when crypto first got popularized. So this is nothing new... Or maybe it is. This time seems different, this time it's more serious. Hopefully, in the long term, this leaves the crypto community for the better now though the impact is devastating.