China’s central government released a five-year plan on Wednesday. The plan calls for stricter regulation across industries. Therefore, the recent crackdown on IT firms, which inflicts damage to investors’ trust in the market, is unlikely to end anytime soon.
The Chinese Strategy
The strategy is extremely critical to the crypto sector. Therefore, it calls for stronger laws on technology and the environment, increased law enforcement in finance and environmental management. Additionally, it promotes the “healthy growth” of new business models in digital industries.
The development was announced on Wednesday by China’s state-run Xinhua News Agency.
China’s Bitcoin Crackdown
Due to environmental and financial concerns, China proceeded to crack down on crypto mining. Ironically, China was once the world’s largest bitcoin mining centre. Currently, miners are relocating their operations to other parts of the world, especially Central Asia.
Reigning Beyond Crypto
However, Beijing’s efforts to reign in the digital industry extend far beyond cryptocurrency. Therefore, prompting international investors to rethink their exposure to the country. Tencent and Alibaba, two Chinese internet behemoths, have seen their stock values plummet. SoftBank is deferring investment in the country.
The strategy also asks for a countrywide unified law enforcement system based on the internet and big data. Chinese local governments have started experimenting with consortium blockchains to combine government data, including law enforcement data.
