The summer of regulatory action has now become a global phenomenon. Lawmakers and politicians are waving their fingers and making threats toward the industry’s leading virtual asset service providers — a term coined by the FATF to describe exchanges, wallets, custodians and even DeFi platforms.
But when it comes to crackdowns on cryptocurrency, few places do it with the effectiveness and experience of the Chinese government.
Unlike in the United States, China’s regulators are not having a public discourse about it. Decisions are made behind closed doors, and announcements come swiftly, posted on government websites or in speeches from well-primed officials.
The directives come from the very top and are swiftly reiterated and enforced by lower-level officials in provincial- or city-level government, by state-owned enterprises and by financial institutions. This top-down style of regulation tends to make the “China ban” seem…