Chinese Crypto Conference Stopped by Police
RegulationBit News Today2 min read
A major crypto conference in Shanghai was abruptly shut down by local police on Monday, in a sharp move that rattled the Chinese crypto community.
The Shanghai Crypto Summit is the largest crypto event in China, with several thousand attendees from around the country and elsewhere in Asia. It features dozens of speakers, including several influential Chinese crypto entrepreneurs and investors, as well as some international figures. On Monday morning, as the main speakers were about to begin their presentations, a large group of police officers entered the venue and ordered the event to halt. Conference organizers say that the police first asked for ID from the attendees, and then gave the speaker's instructions to disassemble the stage, ending the conference.
"Leading up to and during the Shanghai Crypto Summit, the conference organizers took all the steps to ensure the event operated in full accordance with Chinese laws and regulations," said Benjamin, the Hong Kong-based conference organizer. "So this sudden crackdown is a surprise and concerning development for the Chinese crypto sector and the activists driving it forward." ## The Crackdown Explained
The reasons behind this abrupt police action remain unclear. Chinese authorities have in general taken a stern stance toward cryptocurrencies, considering them destabilizing and speculatory activities that undermine state control over financial markets.
But the crackdown on the Shanghai Crypto Summit could be an attempt by the government to take further steps to isolate the crypto sector, which has continued to grow despite the strict regulatory environment.
Chinese citizens and businesses have developed several ways to operate in the crypto sector, despite the ban. They include overseas trading and virtual private networks, or VPNs, to access international crypto exchanges. As a result, Chinese traders continue to be very active in global crypto markets.
The government's firms stance against crypto also reflects a growing international rift on the future of cryptocurrencies. While several countries are embracing crypto as a means to develop a more open and competitive global financial system, China's ban has been followed by other regimes like North Korea and Iran. ## What Comes Next?
Whether Monday's police action will further harden China's stance, or push crypto advocates to devise new ways to operate, remains to be seen. In the meantime, the sudden police raid puts a spotlight on the unique challenges facing the crypto sector in China, and how the Chinese government continues to tighten the vice on the currency in the country.
One local crypto enthusiast with ties to the conference said the episode would not deter the sector's activists and innovators. "The people who are interested in crypto believe it's the future of money and finance, no matter what the Chinese authorities say," he said.
