The “crypto ban” in China seems Ineffective as Businesses Still Accept Cryptocurrency

A couple of months back, the Chinese regulators had gone hammer and tongs to ban activities related to cryptocurrencies. A couple of months in and the ban seems to have fallen apart. According to the latest news reports from the country, few businesses have restarted accepting cryptocurrencies despite the ban.

Chinese eager to participate in the crypto revolution

According to the latest media report, a newly opened hotel announced that it is accepting payments in Ether. Not just that, China’s oldest Tech Publication also has come out and said that it would be accepting bitcoin’s for subscriptions. With the ban still upheld in the countries, it is still unclear whether these actions by businesses fit. within the nation-wide cryptocurrency clampdown by the Chinese government.  The same news was shared over by the Joseph Young who was of the opinion that Despite the blanket ban, it seems crypto in China remains very much active. He shared his views on the tweet.

Detailing on the two news, Beijing Sci-Tech Report (BSTR), China’s longest-running tech publication that commonly goes by “Technology Life,” is reportedly enabling Bitcoin (BTC) payments for the 2019 edition of the publication. According to the announcement, readers of Technology Life can now pay for next year’s subscription with 0.01 bitcoin (about 450 yuan), simply by sending the payment to the publication’s specific bitcoin address. Technology Life notes that if the price of Bitcoin at the end of a subscription period is higher than what the user paid at the start, the company will refund the difference in price.

 

While the other news said, Ethereum Hotel, as the establishment is called, opened its doors at the National Scenic Area of China’s Sichuan province, becoming the first hotel in the country that publicly accepts cryptocurrency. The owners behind the crypto-titled business didn’t provide any details about how they plan to tackle regulators that are reportedly opening new fronts in its battle against cryptocurrencies like Ethereum. The local media report instead focused on how the decision to accept Ether is an advanced move as a whole. A translated excerpt:

“The hinterland of western China has a rich and traditional hotel industry. They are entrepreneurs who accept Ethereum as payments with a goal to participate in advanced blockchain technology and trend.”

The reaction from local authorities and regulators is still pending but it doesn’t seem it would be even loosely positive with the steps the Chinese government had taken.

Also, read: Bitcoin & Cryptos still part of China’s New Middle Class’s Investment Portfolio: Research Reveals

Chinese clampdown was stronger this year

In August this year, China has practically clampdown the who crypto industry in the country. After China banned all commercial events including related to cryptocurrencies, it has gone ahead and hand has blocked more than 124 overseas crypto exchanges that are offering trading services to Chinese residents. A tweet realized by the Korean Cryptocurrency and Blockchain News that mentioned, also mentions Fiat payment channels will be highly monitored apart from Communication channels and Exchange blocks.

Another organization that had to adhere to the regulation was Tencent holdings whose popular app Wechat was asked to ban top blockchain & cryptocurrency platforms due to ‘failure to comply to regulations’ which had come as a shock to local analyst and enthusiasts.

The banned sites are reportedly Huobi International, Binance, DPRating, and TokenClub

With China’s intensified crackdown had left no hopes for business to accept cryptocurrencies in the country. But this mushrooming news of business still accepting bitcoin comes as a relief showing that Chinese business is actually inclined towards using cryptos.

Will the Chinese government go heavy on these businesses that are accepting cryptos despite the ban? Do let us know your views on the same.