FUD Storm Continues as China Steps Up Pressure Against Cryptocurrencies

  • FUD Storm Continues as China Steps Up Pressure Against Cryptocurrencies

FUD Storm Continues as China Steps Up Pressure Against Cryptocurrencies

The crypto industry has been hit hard by the developments in the USA and China where continued regulation of the industry has been putting the pressure on the investors and traders from those countries.

As per a report by the South China Morning Post, searches for terms such as "cryptocurrency", "Bitcoin", and "ICO" do not yield any sponsored posts or paid advertisements on Baidu (the largest Chinese search engine) or Weibo (a Chinese microblogging platform which is somewhat akin to Twitter). This essentially put an end to the Yuan- Bitcoin exchange once one of the biggest drivers in the market. Weibo has confirmed that they have banned cryptocurrency-related advertising. Nouriel Roubini, an economist known for predicting the 2008 financial crisis and for doom-saying in general, said Bitcoin was "the mother of all bubbles". UK's Lloyds Banking Group soon followed suit announcing on Monday that they will also implement the same measures. The announcement by the PBoC is the latest in a series of serious efforts of the government, state officials, and financial regulators to tightly regulate the activities of the cryptocurrency market in the Asian country.

Long Blockchain on Friday said it would not buy 1,000 Bitcoin mining machines, as it had once planned, and would instead focus on trying to merge with the tech firm Stater Blockchain.

"Pseudo-financial innovations that have no relationship with the real economy should not be supported", Pan said last month. In the Financial News article, it acknowledged that recent attempts to stamp out digital currencies by shutting down domestic exchanges had failed to completely eradicate trading. "Overseas transactions and regulatory evasion have resumed... risks are still there, fueled by illegal issuance, and even fraud and pyramid selling". After the closure of the domestic virtual currency exchanges, many people turned to overseas platforms to continue participating in virtual currency transactions. The price of the dominant cryptocurrency has dropped below $8,000, and many altcoins have suffered even more significant losses, following a seemingly endless flood of FUD (Fear, Uncertainty, and Doubt) from mainstream media outlets.

In the aftermath of the ban, crypto traders on the mainland began to subscribe to foreign cryptocurrency trading platforms and served as an opportunity for Chinese citizens to access the market.