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Author: Admin | 2025-04-28
Bitcoin mining's hub has shut down completely... So, why did China Ban Crypto?Let me explain...Concerns over gambling fraud and money laundering led China's Central Bank to designate all crypto-related activities unlawful. The statement triggered a significant dip in markets, with some investors rushing to sell their holdings. The price of Bitcoin plummeted over 10% after the announcement before swiftly reclaiming some of its lost territories.China's crypto crackdown comes as governments worldwide, including the United States, continue to form formal stances on digital assets and virtual currencies. China's Official Stance on Crypto For a long time, China has been wary about cryptography. Chinese banks were barred from dealing with Bitcoin in 2013. China outlawed initial coin offerings (ICOs), the cryptocurrency equivalent of an IPO, in which a cryptocurrency firm sells coins or tokens to acquire cash. They have been declared an unlawful fundraising method by the People's Bank of China, the country's central bank.China has recently targeted crypto-mining businesses operating within its borders. China's state planner indicated an interest in prohibiting Bitcoin mining in 2019. The Chinese government also banned cryptocurrency mining in many regions earlier this year, including Sichuan, the Bitcoin mining hotspot. The impact of the prohibition on China's own state-backed digital currency, e-CNY, is still unknown.China imposed prohibitions identical to those issued in 2013 and 2017 in May, prohibiting financial institutions and payment firms from providing services linked to cryptocurrency transactions.Though banks and payment companies claim they support the initiative, the repeated restrictions show the difficulty of closing
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