China Escalates Crackdown on Cryptocurrency Trading

China is escalating its clampdown on cryptocurrency trading, targeting online platforms and mobile apps that offer exchange-like services, according to people familiar with the matter.

While authorities banned cryptocurrency exchanges last year, theyve recently noted an uptick in activity on alternative venues. The government plans to block domestic access to homegrown and offshore platforms that enable centralized trading, the people said, without being more specific about how policy makers define such platforms.

Authorities will also target individuals and companies that provide market-making, settlement and clearing services for centralized trading, the people said, asking not to be named because the information is private. Small peer-to-peer transactions arent being targeted, they said.

Bitcoin fell 1.2 percent to $13,580.50 at 11:36 a.m. in London, according to Bloomberg composite pricing.

The Chinese governments rolling clampdown has roiled global markets for bitcoin and other digital tokens over the past few months. Regulators around the world are stepping up scrutiny of cryptocurrencies amid concerns over excessive speculation, money laundering and tax evasion.

Read more: A QuickTake Q&A on the Chinese clampdown

Up until early last year, China was the most active market for bitcoin trading on exchanges. Its still home to some of the biggest bitcoin miners, though theyve begun looking elsewhere as local authorities call for curbs on the industry.

Chinas central bank didnt immediately respond to a faxed request for comment.

For more on cryptocurrencies, check out the Decrypted podcast:

With assistance by Steven Yang

Read more:
China Escalates Crackdown on Cryptocurrency Trading