- The hard stance taken by Chinese authorities has impacted yet another cryptocurrency.
- Filecoin has become the latest affected asset after an affiliated company came under investigation by law enforcement.
- The crackdown on cryptocurrencies comes after Chinese authorities banned banks and other financial institutions from undertaking cryptocurrency transactions.
- As part of tightening regulations, logging into a cryptocurrency app in China generates a police warning, informing the user to proceed with caution.
Another crypto has fallen under the hammer of China’s anti-crypto sentiments. The latest victim is Filecoin, as a small, affiliated Chinese firm came under investigation by Chinese authorities. The firm has released a statement, assuring investors and customers that it was simply a routine investigation.
Since the event, Filecoin has lost over 3% of its value which threatens to slump even further. In other developments, iPhone users in China have begun receiving notifications when accessing cryptocurrency apps and websites that run outside of China as the crackdown on cryptocurrencies continues.
The Crackdown Continues!
The investigation comes amid heightened tensions in the Chinese cryptocurrency ecosystem due to the hard stance taken by regulatory agencies regarding crypto.
The firm immediately responded by releasing a statement to its partners regarding the police investigation that came to light on June 16th.
The statement expressed that the company was fully cooperating with law enforcement agencies and affirmed that, since the launch of the company over three years ago, it has played by the rule book and has “safeguarded the legitimate rights and interests of partners.”
The firm stated that, despite the investigation, the company will continue to operate as normal, and hopes that malicious rumours will not be spread against the company.
As of yet, the basis of the investigation is unclear, but in its wake the price of Filecoin has begun to trend negatively. At the time of writing, Filecoin is trading at $68.02, representing a decline in its value of over 3% over the last 24 hours. The last 7 days have seen cumulative losses in the region of more than 6%.
On the Flipside
- Chinese traders remain unfazed in the face of intensifying cryptocurrency crackdowns, and continue to trade in secret.
- China has been, and remains, one of the largest crypto markets in Asia, and across the globe.
- The decentralized and anonymous nature of cryptocurrencies makes it hard for law enforcement agencies to enforce the crackdown.
Even Tighter Restrictions
Since the establishment of the renewed cryptocurrency crackdown by Chinese authorities, law enforcement and regulatory agencies have increased their efforts to clamp down on defaulters. The latest scheme has taken the form of a prompt that appears on the screens of iPhone users who access cryptocurrency applications.
The message reads, “You are visiting an overseas niche website, please browse with caution.” The message seems to only be a warning and users are still able to access the site without interference.
Last month, Chinese authorities precluded banks and other financial institutions from carrying out cryptocurrency transactions, sparking widespread criticism. The active declaration by Chinese authorities has contributed to a dip in cryptocurrency prices, which led to the loss of over $1 trillion in global crypto market capitalization.