BTC.TOP and B.TOP CEO, Jiang Zhuoer claimed the foreseeable shut down of the majority of small-scale cryptocurrency businesses in China. He argued that small crypto business owners will face big losses due to a lack of resources to maintain legal offices and companies in China. Amid the infamous Chinese Crypto Crackdown, from the ban on mining throughout the nation to the great miner’s migration, many crypto businesses may get caught in the crossfire.
— 江卓尔_莱比特矿池 (@Jiangzhuoer2) July 6, 2021
Zhuoer comments came on a day when China’s central bank shut down a Beijing-based software company found to be involved in crypto trading. The Chinese Central bank banned the organization and took down its website. The said company was focused on the entertainment industry with a crypto token of its own.
Effect on Exchanges
Jiang Zhuoer highlighted the absolute migration of large trade and exchange platforms to other countries, meanwhile small exchanges that cannot afford to operate overseas will be forced to shut down.
Along with the latter, exchanges that do not have an adequate employee base abroad will also face trouble in operating out of China or will be forced to transfer their mint employees, similar to what happened in Huobi’s case. Consequently, the crypto circle in China will keep getting smaller to the point of extinction.
Retail investors and small crypto business owners against the Chinese government
With the rise in support of the Defi ecosystem from governments and private institutions abroad, the smarter choice for investors and miners is to migrate to a politically and socially crypto positive arena. China is adamant about continuing and expanding its crypto crackdown.
All institutions involved with the decentralized financial structure of cryptocurrencies are a target in the eyes of China’s authoritarian government. The authoritarian nature of China’s Communist Party grants them to access the entire infrastructure of the nation. Small crypto businesses do not possess the power to stay successfully reliant on their illegal status in China. People and platforms that continue to trade and exchange cryptocurrencies in China may face a high risk of criminal consequences against them from the government.