China, a gigantic cryptocurrency hotspot, has done unusual activities in the past few years. China has announced a ban on cryptocurrencies multiple times but never executed one. To get a detailed overview of cryptocurrency trading, check bitcoin- has been banning prime Since 2014 china cryptocurrency transactions and trading. But by the end of 2020, china contributed the highest trading volume on a cryptocurrency exchange.
Two mining pools of china are alone generated more than 50% of blocks on the blockchain of bitcoin. However, in May 2021, china proclaimed a cryptocurrency crackdown. The Chinese government has banned trading from domestic and foreign exchanges in cryptocurrencies. Despite the ban, citizens of china tend to trade in cryptocurrencies using foreign exchange. It is a thorough guide to the cryptocurrency ban in China.
Cryptocurrency frauds in china!
Undeniably, cryptocurrency is an advantageous payment method. But with the cumulative chaos in the cryptocurrency industry, the number of scams is also increasing. Two fundamental types of cryptocurrency scams are social cryptocurrency scams, and DeFi rug pulls.
After the crackdown, using cryptocurrencies as payment was illegal in china. China has decided to ban cryptocurrencies before also. For example, in 2014 and 2017, China banned trading, initial coin offering, and fundraising in cryptocurrencies.
Cryptocurrencies are illegal in china!
The national bank of china has classified cryptocurrency as an illegal asset and payment method. As a result, no financial institution has the potential to accept this payment method. In short, Chinese cryptocurrency regulators have ended the speculations of making cryptocurrency a legal tender. However, it is tough to weed out bad actors doing illicit activities in a country with a large population.
China- A home to bitcoin mining!
China is the leading country when it comes to bitcoin mining. China has hosted many mining pools, and out of all these mining pools operating from china, only two mining pools have created more than 60% of blocks on the public ledger of bitcoin.
Most of the ASIC manufacturers are situated in China, and the leading developer of ASIC in terms of customer base and services is Bitmain. The market valuation of Bitmain is worth billions of dollars, and the country has recently gone public with its official initial public offering. In addition, Bitmain is the parent company of a large cryptocurrency mining pool that is ant pool and BTC top pool.
Will cryptocurrency now be completely banned in China?
China has been announcing cryptocurrency regulations for a very long time, and but not a single time, these decisions have lasted for over one year. Banning cryptocurrencies is a daunting task. Even if the government authorities take some crucial measures regarding cryptocurrency trading and mining, people will find an alternate way.
The low price of electricity in China is a significant reason why china is a hotspot for cryptocurrency mining. However, nobody knows what china has plans, whether they will sustain the ban on cryptocurrencies or not. Some mining pools and mining plants are still waiting for Chinese authorities to reserve the cryptocurrency mining ban.
Moreover, many cryptocurrencies mining poo continue mining activities even after the ban. Therefore, even if China decides to continue the cryptocurrency mining ban, it will be tough for the government to monitor mining activities. Furthermore, since China is populated, it is tough to regulate cryptocurrencies and mining as the government cannot watch every citizen.
In short, even after banning cryptocurrencies mining and trading in the country, China will never ultimately succeed. As per sources, just like previous times, china reserves its decision of crackdown and continues cryptocurrency trading alongside mining.
But China seems to be very serious about banning all virtual currencies. Therefore, China has created its cryptocurrency named Yuan. The only motive of Yuan is to facilitate the utilization and concept of cryptocurrencies amongst citizens of china. The fiat currency of China is also named as Yuan. Yuan, a digital coin, is pegged with the value of Yuan’s fiat currency.
This is all about the ban of bitcoin in China. You can go through other websites to understand more about this.
