Shenzhen, China,Oct 01,2021: 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.
