In a report published by People’s Bank of China (PBoC), the bank makes claim that disguised ICO’s are still making their way into the country regardless of the enforced ban.
Although many cryptocurrency parties, including some of the world’s largest cryptocurrency exchanges by trading volume, have moved out of the country after the continued tensions between the regulators and the crypto-sphere. A few firms still continue to offer their services on the Chinese mainland. They have even found creative ways to bypass the ban on crypto investments by using “agents” located overseas to invest on behalf of Chinese investors, the report noted.
The report noted that ‘airdrop’ is another of the methods employed by exchanges and players to promote crypto activities. For those who don’t understand the concept of airdrop, it is a distribution package for a cryptocurrency token for free to a large number of wallet addresses. It is implemented as a way of gaining attention and new followers, resulting in a larger user-based interest and a wider disbursement of coins.
“Some grey rhino financial risks could emerge as the Chinese economy is gearing towards high-quality growth from high-spend expansion and structural adjustment,” China Financial Stability Report 2018
The metaphor of ‘grey rhino’ sets perfectly well with the situation on hand for China. In the past, China had a love hate relationship with cryptocurrency. Movements were started to adopt cryptocurrency but then were banned. Events about cryptocurrency were banned. The president showed slight hint of adoption in his speeches once but no further work has progressed.
China controls more than half of the mining pools in the world. It is capable of the notorious 51% attack with all this processing capability. What’s still not clear is that what does the Chinese regulator panel wants from cryptocurrency. Clearly, banning them didn’t sit so well with Chinese population.
“The depth and dimension of China’s financial reform will also be expanded. The pace of opening up will accelerate rather than slow,” China Financial Stability Report 2018
Hopefully, this widening pace of opening will have cryptocurrency as a constituent in the coming days.