China’s crackdown on bitcoin threatens to undermine the industry's global economy, according to a new US government report.
Drawing a contrast between the actions of domestic authorities to "investigate and regulate bitcoin without restricting its use" and the recent, restrictive steps taken by the Chinese government, the United States-China Economic and Security Review Commission report concluded:
During this time, Chinese regulators have displayed little transparency about their intentions, the report finds:
Bitcoin's next China
Although the crackdown has had an impact on China's bitcoin economy, locations like Hong Kong have benefitted from the Chinese government’s actions.
Hong Kong has a "wide regulatory latitude and tech-friendly atmosphere", the report notes, arguing that it is the "most suitable transplant location ahead of Singapore and South Korea".
The question now is how much farther the Chinese government will go to deter bitcoin businesses.
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