Chinese Media Warns Against Crypto Market Enthusiasm
- Chinese media under the direct control of the Communist Party stated that the President’s support of blockchain does not mean support for crypto.
- After Xi Jinping endorsed blockchain tech in the country, fintech companies’ shares soared in price on market opening.
Tea ceremony supplies. Freepik
Chinese state-owned media has warned investors not to interpret Beijing’s support for blockchain as a support for cryptocurrencies, Reuters reported on 29 October.
According to the report, Chinese news outlet the People’s Daily, which is under the direct control of the Communist Party of China, has published material to remind investors that the Chinese President’s support of blockchain technology does not mean that they should invest in cryptocurrencies. The news outlet wrote:
“Blockchain’s future is here but we must remain rational. The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies.”
After the Chinese President, Xi Jinping, vowed to make the country a leader in blockchain tech last week, investors in the country rushed into the shares of firms engaged in blockchain, which resulted in fintech companies soaring in price at market opening this Monday.
Reuters further reported that the independent Shanghai Stock Exchange warned traders, saying:
“For any blockchain-related (topics), we ask listed companies to make statements based on facts and not make any exaggerated claims or create vicious hype.”
The hype around blockchain companies could have also came from the news that China has had over 500 enterprise blockchain projects registered in the country in the past year.
The Chinese government is also trying to regulate the new technology, having signed a new law which will govern various aspects of blockchain technology.
The People’s Bank of China has recently released a new verification platform, called “Certification of Fintech Products”, which it will use to license 11 types of financial technology software and hardware that are broadly used for blockchain services and digital payments.
- The head of China’s central bank digital currency institute said the e-CNY has undergone a major upgrade, and should be made available as an option in all retail scenarios.
- The PBOC official noted that platforms can integrate the CBDC in the short term using QR codes, and focus on upgrading their payment tools in the long run.
Office building of the People’s Bank of China. Flickr
- The team behind Multichain confirmed that their CEO was detained in China on 21 May, and that all of his electronic devices were confiscated by the local police.
- The CEO’s sister moved the project’s remaining funds to wallets under her control on 9 July, and several days later was also detained by the police, leaving the team with no funds.
- A new 13-count superseding indictment has accused Sam Bankman Fried of bribing one or more Chinese officials in order to unfreeze accounts connected to Alameda.
- In early 2021, Chinese authorities froze certain Alameda accounts on two of China’s largest crypto exchanges”, which reportedly held more than $1 billion worth of crypto assets.