China has already banned crypto mining and trading in 2021, and this has affected the market significantly. And now, when there is a lot of market uncertainties due to the Russia-Ukraine situation, China makes crypto fundraising illegal. The supreme court in the country has also declared jail times and fines for the activities. This new law passed by China is an amendment to previous legislation on crypto transactions and will be in effect from 1st March.
China makes crypto fundraising illegal
The supreme court has made amendments to Section no 8 of Article 2 and has added: “illegal fundraising by way of online lending, investment in shares, [and] virtual currency transactions.” This law will make crypto laws even more strict in the country and solidify China’s stance against cryptocurrencies. The court has said that anyone caught doing illegal fundraising will be prosecuted under the criminal law Article 176. They will also face penalties between 20,000 Yuan – 500,000 Yuan and 3-10 years in prison.
The amount of fines and the period of imprisonment will depend on the amount of money involved. On the downside, it’s 3 years and 20,000 Yuan. So, it will now stop crypto businesses to do any time of fundraising in the country. China is doing all it can to remove every trace of crypto from the nation. The reason is very clear for the same. Like Ted Cruz said, Bitcoin brings power to the people that a communist nation like China wouldn’t obviously want.
The impact on market
While the previous time China crypto bans have significantly affected the market, there hasn’t been much commotion this time. It seems investors have got accustomed to China banning crypto that it’s not worthwhile a dump. At present, Bitcoin is trading at $38.7k, and the bulls have been trying really hard to test and break the $40k level. It will be challenging to say when that happens, but there is also a chance we move back lower. The $38k support will be essential to look out for as the price is already near it.
What are your thoughts as China makes crypto fundraising illegal? And do you think at this point, no one cares about China’s steps against crypto? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Bitcoin moves past $40k but is unable to sustain at those levels
