Does China’s ban on crypto trading and mining mean the end of Bitcoin and crypto?
Almost certainly not, no. However, this move does once again highlight the volatility of cryptocurrencies with Bitcoin plunging 10% on the announcement. There are also rumours of a fire sale of crypto mining equipment in China now its use has been officially outlawed.
Cryptoassets remain largely unregulated in the UK but the FCA continues to extend its regulatory reach in this area via the Money Laundering & Terrorist Financing Regulations. The regulations require cryptoasset businesses (‘crypto asset exchange providers’ and ‘custodian wallet providers’) operating in the UK to register with the FCA, thereby confirming they have met certain minimum AML standards. To date, only around 13 of 200 plus applications have been granted and the ‘temporary registration regime’ (allowing cryptoasset businesses to continue to operate during the registration process) has been extended to 31 March 2022.
Given the steady increase in regulatory oversight around the world, it looks like there is a challenging year ahead for crypto businesses.
"In the history of crypto market regulation in China, this is the most direct, most comprehensive regulatory framework involving the largest number of ministries,"