Expansion of the crypto ban in China
The Chinese authorities continue to tighten their position on the cryptocurrency market. This time, they have expanded the ban on cryptocurrencies to include the tokenization of real assets (RWA) and the issuance of stablecoins pegged to the yuan outside the country.
According to a statement from the People's Bank of China, any activity related to cryptocurrencies, including mining, trading and conducting ICOs, is now illegal. The ban covers not only virtual currencies, but also tokenization of real assets (RWA), as well as the issuance of illegal stablecoins pegged to the Chinese yuan abroad.
Experts note that in this way, China is trying to take full control of the money circulation in the country and prevent the development of alternative financial instruments that could undermine the position of the national currency.
Context for Russian readers
The tightening of the crypto ban in China can have a significant impact on the Russian market. Despite the lack of unified crypto regulation in Russia, the country is one of the leaders in terms of Bitcoin mining volume. Some of the capacities withdrawn from China may be redirected to Russia, which will lead to increased activity in the market.
In addition, the ban on the issuance of stablecoins pegged to the yuan may limit the possibilities of settlements between Russia and China in national currencies, which will push the search for alternative payment instruments, including cryptocurrencies.
Conclusion
China's actions to further tighten the regulation of the cryptocurrency sphere demonstrate that the country's authorities intend to maintain full control over the financial system and do not allow the emergence of alternative payment instruments. This can have a significant impact on the global crypto market and create new opportunities for the development of the industry in other countries, including Russia.