Speculations and potentialities apart, China\u2019s crypto crackdown in 2021 has been quite uncompromising. Regardless of being thought-about a working joke by consultants, which is to fade out in time, the robust strategy hasn\u2019t been all that nice for the merchants. With the newest announcement coming in with disparate figures, exchanges like But then, as disconcerting as this might sound, the crypto market is expected to continue its bullish breadth, and almost every player, including Bitcoin, Ethereum, and more, is expected to come out unscathed. Despite the ban surfacing at least three weeks before this discussion, Bitcoin is comfortably placed at over $68000, as we speak, gearing up for the next up move. Four years later, payment gateways allowing crypto transactions were banned, and even speculative trading was brought under the prying scanner. However, 2021, till now, seems to be the most restrictive year for crypto in China, with the country banning crypto mining in June, sending out ominous signs in July, and eventually subjecting the entire space to something on the lines of a wholesale ban, restricting every activity, within or even outside its borders, provided they cater to the Chinese populace.\n<\/p>\n It\u2019s November already, and while the global crypto space seems to be revelling in the glory of the $3 trillion market cap, China-based crypto exchanges are getting their digital assets wiped out. Quite an irony isn\u2019t it.\n<\/p>\n But why is China hellbent on putting crypto in the ground!\n<\/p>\n Isn\u2019t it a calculated strategy to deflate the crypto prices and then buy it on the dip? As much as this sounds remotely possible, there is a bit more to it.\n<\/p>\n China\u2019s widening crypto ban can be attributed to a host of reasons. Briefly, China wants to cut out any competition to its regulated, monitored, and blatantly centralized Digital Yuan. But the jarring announcement on September 24, 2021, seemed like a desperate move towards cutting out anything decentralized and transparent.\n<\/p>\n But that\u2019s just being proactive right! For now, China is justifying its stance to put a tab on the surging electricity consumption resulting from crypto mining. Surprisingly, the reason seems vindicated enough as in 2019, and China alone contributed to almost 75 per cent of Bitcoin\u2019s overall energy consumption. The number did drop to 41% in 2021 and is expected to go down further.\n<\/p>\n Still, this justification hardly seems persistent enough as several eco-friendly cryptocurrencies like Chia, IOTA, and Cardano are slowly surfacing, with lesser energy-specific demands. Adding to this is the newfound concept of \u2018Green Bitcoin Mining\u2019, which suggests that 56 per cent of the global mining energy in Q1, 2021, was derived from renewable sources.\n<\/p>\n Well, this makes China\u2019s entire electricity-specific uprising amount to nothing, right!\n<\/p>\n Evidently, China\u2019s coordinated attack on the crypto market is backed less by facts and more by the willingness to exert complete control over financial activities. Plus, the timing of this ban couldn\u2019t have been better now that the country is already trying its best to unseat Bitcoin with its in-house, government-backed digital currency, eCNY.\n<\/p>\n How are these restrictions going to benefit India? To be honest, the only way India benefits from China\u2019s crypto crackdown is by being progressive. Encouraging crypto transactions, mining, NFT adoption, and even ICOs will play a pivotal role in driving the crypto craze in the country.<\/p>\n Also, by the time you read this, a leading Indian tea manufacturer\u2019s and Megastar Amitabh Bacchan\u2019s NFTs will be up for grabs. If that\u2019s not encouraging, we don\u2019t know what is.\n<\/p>\n Also, China\u2019s stern stance towards crypto did turn quite rewarding for the Indian or global investors, giving them multiple buying opportunities. And with leading crypto-players making new ATHs, things haven\u2019t ever been more encouraging.\n<\/p>\n Plus, China\u2019s intensified crackdown pushed the prices of Altcoins like Litecoin down by a significant margin in September, offering Indian investors several value buying opportunities. But that\u2019s just scratching the surface!\n<\/p>\n The basic set of benefits are far more pronounced and require foresight. China banning digital assets has already forced several miners to move out to other countries. And with leading crypto-exchanges like Huobi having to drop the Chinese users, the Asian crypto juggernaut will inadvertently head towards India.\n<\/p>\n Provided India softens its stance towards crypto and becomes more accommodative towards miners, and we could see an influx of crypto-minded nerds and colossal players into the country.\n<\/p>\n The inflow of miners followed by the sentiment-driven price drops is expected to work well for significant crypto exchanges, with traders and investors finding this scenario opportune enough to enter Bitcoin or Altcoins for the longer haul.\n<\/p>\n In hindsight, India has the potential to become a crypto magnet, with this latest move from China being the primary precursor for growth, employment, and financial opportunities. But what about the panic sales? Therefore, the sell-off was actually a way to liquidate cash reserves and go mainstream with crypto investments. This is exactly what we are expecting even in the months to come, which might be instrumental in driving the Indian crypto renaissance.\n<\/p>\n Also, China\u2019s stand would fade out in time With Indian exchanges accessible at that time, the scope for growth would be immense as crypto is and will never be restricted by mere borders. Also, crypto trading and investing platforms like And what\u2019s encouraging to see is that while China continues to shackle cryptos by handing out censured bans, the popularity of this decentralized, transparent, and immutable concept is increasing across the globe at an incredible pace, scaling way beyond the momentary FUD (Fear-Uncertainty-Doubt).\n<\/p>\n Disclaimer:<\/strong> The above content is non-editorial, and TIL hereby disclaims any and all warranties, express or implied, relating to the same. TIL does not guarantee, vouch for or necessarily endorse any of the above content, nor is responsible for them in any manner whatsoever. The article does not constitute investment advice. Please take all steps necessary to ascertain that any information and content provided is correct, updated and verified.<\/em>
\nCoinSwitch Kuber<\/a>
\n reported an almost 30 per cent fall in weekend transactions immediately after the ban was reported.\n<\/p>\n
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\nLet\u2019s trace China\u2019s crypto takedown timeline
<\/strong>As a robust economy, China started instituting restrictions on crypto transactions that date back to 2013, when the PBOC (People\u2019s Bank of China) restricted banks from sanctioning and even participating in Bitcoin transactions. <\/p>\n
<\/strong>\n<\/p>\n![\"3d-rendering-some-metallic-bitcoins-front-badge-with-indian-flag\"](\"https:\/\/img.etimg.com\/photo\/msid-42031747,quality-100\/et-logo.jpg\" "\\"3d-rendering-some-metallic-bitcoins-front-badge-with-indian-flag\\""){kind=logo}
ET Spotlight Special<\/span><\/figure>\n<\/div>\n
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<\/strong>Like any other asset class, even Bitcoins and Altcoins experienced massive selloffs once China\u2019s viewpoint came to light. There were quite a few Indian investors who hurriedly squared off profitable positions in Altcoins. However, that transient scare wasn\u2019t serious because the crypto market is already valued at $3 trillion. <\/p>\n
<\/strong>Honestly, it is difficult to regulate something as innovative as cryptocurrency. Plus, with the Internet being the breeding ground for cryptos, China will have to do a lot more than just tagging it illegal to dissuade domestic investors.\n<\/p>\n
\nCoinSwitch Kuber<\/a>
\n are expecting a massive surge in the number of crypto entrants as the year draws to an eventful end.\n<\/p>\n
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