In China recently, the crypto market was under threat but never was it shut completely. But now that might happen. China bans crypto 2021. The new blanket ban on all digital currency mining and trading at Beijing has sent the service providers and exchanges clambering to serve business associations with the mainland Chinese users.
The regulators in China on Friday asserted that the crypto mining and trading is considered as
“Illegal” which is the strongest step against the non-government issued currency as of now. In a press release, the People’s Bank of China asserted that the rules are important to “maintain national security and social stability”.
China bans crypto, and it has undertaken necessary steps to curb the increase of digital currency since 2013, but with zero boom in the crypto space in 2021 and a slow rollout of the official cryptocurrency of China, the Digital Yuan.
China Ban On Crypto: A Timeline
As per recent news, the Chinese government views crypto as illegitimate, and also a risk to the financial sector, a drain to nature, and something which cannot be completely controlled by them. Until now, the fight of China against cryptocurrency had mostly consisted of a portion of restrictions in the industry. The action of China gradually shifted from the cracking down of individual entities and now to the industry as a whole. So if you are wondering how many times China bans crypto, then here is your answer.
China Crypto Ban 2013
- China prevents all the banks and financial institutions from handling any transactions in BTC, terming it a “virtual good” and not any legal tender.
- The largest crypto exchange in the country, BTC China stops accepting deposits in Yuan under the pressure of the government and the payment processors.
China Crypto Ban 2017
- Despite the huge boom, China asserts that it is looking at money laundering and market manipulation through BTC.
China Bans Cryptocurrency 2017
- China bans ICO (Initial Coin Offerings)
- China bans cryptocurrency exchanges. The citizens highly get around the ban by availing offshore exchanges and P2P (peer-to-peer) trading.
Cryptocurrency Ban By China 2019
- China plans to discard crypto mining, but eventually fails to enact that.
China Bans Crypto 2021
- As crypto mining begins to threaten the environmental goals of the nation, there is a crackdown on China’s crypto mining.
- China bans crypto completely by banning financial institutions and banks from offering services that are related to digital currencies.
What Is New About This Latest China Bans Crypto?
All the digital currency exchanges are racing to serve ties with the customers in mainland China. The shift appears after Beijing signaled last week that it was cracking down on equality in trading. 10 powerful Chinese regulators said that overseas exchanges would now be banned from offering services to Chinese customers through the internet. That was previously a gray area in the rules.
On Monday, major platforms by Binance and those who abide by Global stopped registering new users in the countries who obey and also pledged to clean up the existing accounts by the end of this year. But this did not stop the shares of affiliates who follow tech plunging by over 1/5th.
Crypto companies around the globe face high scrutiny, but out righting the bans is rare. However, the authorities in China have come to see BTC as a fluctuating speculative asset which has zero intrinsic value. They also witness them as a way to get around the capital control of the country following the crackdown on massive tech firms and other industries. It seems like the capital of the country, Beijing watch dogs now have digital currency in their sight.
There have been previous scenarios where China bans crypto impact has been huge, but in those cases, the crackdown has appeared to have led to the capital outflow of many exchanges that are based in China. The amount of capital that flowed out from these crypto exchanges was nearly $28.3 billion. The exchanges include Huobi, OKEx, and Binance.
Frequently Asked Questions On China Bans Crypto
In 2021, China bans crypto completely by banning financial institutions and banks from offering services that are related to digital currencies.
There have been several instances since 2013, where China banned several segments and activities of crypto. In the above portion you will find complete chronological details of the same.
The first ban on digital currency by China was in 2013, when China prevented all the banks and financial institutions from handling any transactions in Bitcoin, terming it a “virtual good” and not any legal tender.