• Callie

Is China's Crypto Crackdown Affecting their Banking in 2022?


Buying and Selling Cryptocurrencies Is Illegal in China!? So, what’s it going to be?


The Chinese central bank stated on its official site that cryptocurrencies such as Bitcoin and Tether are not legally allowed in the Chinese economy. Although it is not banned in some of the countries, governments worldwide are keeping a close eye on Bitcoin and other cryptocurrencies as they continue to expand in wide acceptance. Virtual currencies are attracting regulatory and law enforcement attention because they are decentralized and function independently of any central bank or government institution.


The Chinese government has no intention of relenting in its crypto crackdown. The latest in a series of steps includes tracing individuals' IP addresses to see if they are mining cryptocurrency or not.



*Photo credit to the source


A Shanghai Telecom report, acquired lately by Chinese crypto-journalist Colin Wu, reveals the IP address of the address and the type of cryptocurrency being mined.


Small and medium-sized cryptocurrency mining activities, many of which take place in people's homes, have been declared illegal by the Chinese Central Bank. Chinese authorities have long held a strong anti-crypto bias, but recent moves by the government suggest they intend to completely ban its use. Legislation to be drafted by the Chinese court would punish cryptocurrency-related behavior, including mining and trading.


*Photo credit to the source


Exploring 2022 of Banking in China


Slower loan growth, weaker profitability, and more credit concerns face Chinese banks as Beijing tries to free up money for lending. Bank net interest margins will remain low despite a late-year five-basis-point drop in China's benchmark interest rate aimed at lowering necessary reserve levels. Analysts say weak economic growth, recurrent debt difficulties among property developers, and the expiration of loan repayment extensions for smaller enterprises are increasing credit risk for lenders.



To be Continue, what’s next? Metaverse!?





Sources:

Technotification, CoinGape, PYMNTS