Author: Cryptonaire Staff

The price of bitcoin is rising due to the sudden demand for the cryptocurrency. The rise comes after China’s State Administration of Foreign Exchange (SAFE) has announced that it has aggressively stepped up investigations into capital outflows and intensify a crackdown on underground banks on October 20th, 2016; and will put top level security monitoring on all flow of funds in the next couple of days. Underground and authorized consumer banks have been finding it rather difficult to move funds outside the country since the crackdown and have moved to bitcoin as a source of transfer and value stability.



Also, China’s central bank seeks more control over Wealth-Management Products due to the scrutiny the country’s financial-state is facing. Residence have been seeking ways to maintain the value of their savings and assets due to the decline in the Chinese Yuan. However, since China has created a zero-tolerance on underground banks; it won’t be much longer until China considers banning ICO’s to avoid smart-contracts that are centered around Yuan conversion or money laundering. Considering the current global economic perspective regulators across the globe will start considering permits and regulations on cryptocurrency operations in the country. These governmental actions hint out possible integration from regulated financial markets which will dramatically increase volatility with a positive trend, followed by a down trend in the market. However, due to its decentralized nature it would be impossible to control cryptocurrencies, hence the extreme amount of speculation and volatility. Any type of regulatory implementation or integration expresses feared behavior and will cause purchasing powers to be rather difficult. This will lead to an increase in price in the foreseeable future.