China banning the crypto-transaction can effect eCommerce business
China calls all digital currency activity illegal and vows to impose a ban on the move which can affect the eCommerce businesses that allow cryptocurrency transactions.
The People’s Bank of China (PBOC) today announced that all transactions involving cryptocurrencies are illegal in the country and must be banned amid the concerns of national security and social stability. In the Q&A posted to its website, the People’s Bank of China has elaborated that services like order matching, trading, token issuance, and derivatives of virtual currencies are entirely banned. China is also terming overseas cryptocurrency exchange services as also illegal.
According to CNBC’s translated statement, it seems like China is going to give hard time as the PBOC said in a statement “Overseas virtual currency exchanges that use the internet to offer services to domestic residents is also considered illegal financial activity,”
This move can be termed as alarming for eCommerce businesses because large eCommerce platforms and retailers accept cryptocurrencies for purchases. Because this exchange offers a lower transaction fee also allows anonymous buying and contrary to popular belief the cryptocurrency exchange also reduces fraud and chargebacks. And due to all these advantages bitcoin in addition to all cryptocurrencies is preferred to be included as an option of payments in eCommerce website and Application Development.
The crypto market is predicted to be unstable as the move has already spread panic among some crypto-traders. Also, earlier this week the price of the Bitcoin nosedived to 46000$. The People’s Republic of China is the resort to one of the world’s largest crypto mining services. Yet, the National Development and Reform Commission announced that it was initiating a nationwide clean-up against cryptocurrency mining. This is not the first time China has taken action against cryptocurrency as earlier this year in May China called for a severe crackdown on Bitcoin mining.