China’s State Media Predicts Stricter Crypto Controls Aftermath of Terra

Due to the collapse of the Terra ecosystem, China’s state-owned media source, the Economic Daily, has suggested that the Chinese government may impose even stricter rules on cryptocurrencies and stablecoins. The source revealed the collapse of TerraUSD (UST) and Luna (LUNA) in a story published on May 31, describing the algorithmic stablecoin’s workings. It took advantage of the so-called “black swan” event to applaud China’s move to ban bitcoin. “My country has been cracking down on virtual currency trading speculation and many trading platforms,” reporter Li Hualin wrote before adding, “this has effectively blocked the transmission of this risk in China and avoided investment risks to the greatest extent possible.” Chinese state media signals tighter crypto regulations in Terra aftermath https://t.co/iMxths95eR pic.twitter.com/RrwezbrjR1 — Crypto academy (@Cryptoacademysp) May 31, 2022 Since mid-2021, the Chinese government has been toughening its stance on cryptocurrency after banning crypto exchanges in 2017. Several government authorities have issued warnings about the dangers of investing in cryptocurrency, and there has been a massive crackdown on mining in the country. Colin Wu, a China-based cryptocurrency reporter, clarified the ban, telling Cointelegraph that while regulations prohibit institutions from providing crypto services, they “do not bar regular people from utilizing cryptocurrencies, as there is no specifi...