Cryptocurrency transactions are illegal, according to China’s Central Bank
For years, the Chinese government had been cracking down on the mining and trading of cryptocurrencies, despite the country being one of the world’s largest crypto markets. While trading cryptocurrency was technically banned in June of 2019, the government made their harshest and most sweeping ban yet following the declaration of all crypto transactions to be made illegal in September 2021. Foreign companies, crypto exchanges, and individuals outside of China are also barred from providing any kind of cryptocurrency services to citizens of mainland China under the order.
In the time before the ban, the country had been a massive hub for Bitcoin mining operations, at one time having the highest percentage of Bitcoin being mined in the world. So why put an end to such a lucrative sector?
Primarily due to control, or rather, the lack thereof. Due to Bitcoin and other cryptocurrencies’ inherent decentralized structure, they can be used without any traces to a central bank. As a result, regulation is no easy feat, and they can be used for illicit activities without repercussions. The notice on the official website of the People’s Bank of China explained cryptocurrencies are “disrupting economic and financial order, breeding illegal and criminal activities such as gambling, illegal fund-raising, fraud, pyramid schemes, and money laundering, and seriously endangering the safety of people’s property”.
Hardcore crypto enthusiasts would beg to differ, seeing the space as a unique vehicle for growing one’s personal wealth without central entities getting in the way. Conversely, critics would agree with the People’s Bank’s stance, as scams, Ponzi schemes, and the like are unfortunately all too commonplace in crypto. As a relatively young and developing space, newcomers (and even experienced aficionados) can be easily deceived, tricked, and scammed out of their hard-earned money.
Additionally, experts believe the ban was put in place to coincide with the People’s Bank’s development of their own digital yuan (e-CNY) that they can fully track and maintain complete control over. This project has been in development since 2014 and is still in the midst of its piloting phase before its broader rollout to the general public.
Shortly after news of the crypto ban broke, Bitcoin’s price fell by as much as 6.5%, trading at around $41,882 and Ether dropped by up to 9% down to about $2,867. The prices of each have since rebounded in the months following the decree, and at this time of writing are currently sitting at around $47,578.70 and $3,751.87 respectively.
Is Cryptocurrency Illegal in China?
Contact Cloud Rush USA for more information.
Cloud Rush USA is a Southern California based cryptocurrency mining facilitator specializing in Filecoin mining plans. The views and opinions expressed on this Site are solely those of the author(s) and do not necessarily reflect the views of Cloud Rush USA or its employees. The content provided on this Site is for informational purposes only and should not be construed as investment, financial, or other advice.
Cloud Rush USA
1 Pointe Dr. Ste 530
Brea, CA 92821
CLOUD RUSH USA APP | FACEBOOK | INSTAGRAM | TWITTER | LINKEDIN | GOOGLE MY BUSINESS REVIEWS | YAHOO | NEWSFILECORP | NASDAQ | KTVN NEWS | MEDIUM | BLOGGER | REDDIT | QUORA | TUMBLR | MANTA | MERCHANT CIRCLE | ELOCAL | BROWN BOOK | GOOGLE MAP | NEUSTARLOCALEZE | YELP | NEXTDOOR | STOREBOARD | EZLOCAL | TUPALO | CYLEX.US