Confusion Reigns After China Slams Door On Crypto

Shenzhen, China – Moves by Chinese authorities to close regulatory loopholes around cryptocurrency trading and mining late last week essentially banned all such activities in China overnight. And many crypto holders are still scrambling to deal with the fallout.

For many companies that made big bets on crypto over the past several years – particularly companies in the tech industry – options may be limited for cashing in their holdings.

The directive from the People’s Bank of China declared all virtual currency-related business activities illegal, cutting the country off from overseas crypto exchanges. That could potentially lead to punishment for investors who deal with exchanges abroad.

“What is a little unclear is when the timeline for the literal cut-off date is,” said Winston Ma, an adjunct professor at New York University and expert in global financial regulation.

“When is that magic date for no more transactions, no more crypto holdings?” he asked Al Jazeera in a video call.

Ma said that technically last Friday – the day the notice was issued – could be considered the effective date, but even that hasn’t been specified.

“Especially listed companies, they have far more compliance obligations than retail investors, so you can imagine they have to think about what the right way is to comply with this regulation,” Ma said.

Nearly a week later, that lack of clarity remains.

“This is a space I continue to watch as we do not really know what is going to take place,” Kevin Desouza, professor of business, technology and strategy at Queensland University of Technology, told Al Jazeera in an e-mailed response to questions. “There are too many variables in play right now to say with any certainty what the options are.”

This uncertainty has led to constant calls, emails and messages from confused clients to people like El Lee, chief operating officer of Singapore-based crypto asset custodial firm Digital Treasures Management. Continue reading with Aljazeera.

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