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China May Try to Block All Bitcoin Transactions

According to this article on bitcoin.com that I've just found on my crypto news site, China may try to block all Bitcoin transactions.

The article states:

"Regulators have decided on a comprehensive ban on channels for the buying or selling of the virtual currency in China that goes beyond plans to shut commercial bitcoin exchanges."

The article also states:

"A broader clampdown will likely include blocking mainland access to websites of foreign bitcoin exchanges such as Coinbase in the U.S. and Bitfinex in Hong Kong."

Another article I saw yesterday (which I forgot to bookmark) mentioned that the China clampdown has already created a "cottage industry" in terms of P2P markets popping up in the country, and also that Chinese nationals could quite easily travel to nearby countries such as Australia and Japan to get their Bitcoin, or even Hong Kong.

Which marketplaces is China focused on?

The article linked above states that:

"The bitcoin exchanges specifically named in the document include Coinbase, Okcoin, Bithumb, Bittrex, Coinone, Bitflyer, Bitstamp, Bitfinex, Poloniex, Kraken, Bitmex, and Localbitcoins."

Miners could be hit too...

"With the domestic bitcoin trading platforms closing down and the prospect of overseas trading channels blocked, “mining business will be hit hard.”

This could create a mining vacuum perhaps? If the mining operations in the country are not allowed to sell the coins their rewarded with, then what? Will these operations leave the country? Or, will the equipment be sold off? Could be an interesting one.

This news comes from an article published yesterday in the WSJ, so it may be old news already. But!

Meanwhile, in Russia

On a more positive note, Russia is said to be planning to legalize cryptocurrency. The article states:

The Finance Minister Anton Siluanov, stated, that “all countries are working to legislatively regulate the use of this financial instrument, and the financial instrument is very volatile, that is, today it has one price, tomorrow another. In order for us not to have so-called deceived investors, regulation is necessary. The Ministry of Finance will prepare such a draft law by the end of the year.” Also, the deputy finance minister of Russia stated, they “believe it is possible for individuals to participate in the purchase of these instruments, but these purchases should be clearly regulated, identified and settlements in these digital currencies must be controlled by the relevant authorities.”

It’s important to point out the fact that at this moment, Bitcoin is legal in Russia as long as it is not exchanged to their national currency, the Rouble, as it might reportedly undermine the currency, according to Russian authorities.

I had no idea about that last part, but it's very interesting that Russia appears to be moving in the right direction with regards to all things crypto. I'm sure some will be against the regulatory aspect of it, but I think regulation rather than an outright ban, as it appears China is going for, is far better for the growth of the cryptocurrency space.

Any thoughts on these 2 very different approaches? Let me know in the comments!

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