China is one of the largest places for cryptocurrency markets, including being the location for a huge section of all Bitcoin mining. Although trading crypto in China has been banned since 2019, trading has continued mainly by foreign exchanges but Bitcoin mining has decreased in China since then.
As of today (24/09/2021) regulators in China have taken a stronger position on cryptocurrencies with a total ban on crypto currency transactions and mining. As a result it has caused the value of bitcoin to fall by over £1k.
Even with this total ban by China, it has knocked the value of some cryptocurrencies as have changes againt crypto by China before. However, from a more positive point of view for cryptocurrency users: now that cryptocurrency is totally banned in China it is very unlikely China will effect the value of cryptocurrencies in any strong way in the future, even though some people in China will without a doubt find ways to use cryptocurrency. The worst of the changes from the CCP are out of the way – it can’t get any more anti-crypto than a total ban.
According to the Chinese Central Bank, it is now illegal for Chinese residents to purchase cryptocurrencies in any way, including from foreign exchanges. They are not permitted to be involved with cryptocurrencies in any capacity.
It is now very clear China wants to totally outlaw cryptocurrencies in the country. It comes at a time when some countries such as El Salvador are taking a totally different approch by making Bitcoin legal tender. However the move to ban cryptocurrencies comes as no surprise – it is not the first time China has made tough moves on restricting what citizens can and cannot do, for example the ‘Great Firewall’ is something the CCP is well known for which restricts what internet users can access within China.