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Author: Admin | 2025-04-28
Widespread that many businesses, including the country’s largest search engine Baidu, began accepting it as payment.Investment in Blockchain Industry in China. Source: StatistaIn 2017, during the crypto bull market, Chinese officials imposed increased sanctions on crypto trading, focusing particularly on Initial Coin Offerings (ICOs). ICOs, digital tokens meant to represent an ownership stake in a new crypto project, have seen a significant increase in trading. Nonetheless, many of these ICOs became scams due to the lack of regulation. To curb the ICO craze, China banned all platforms offering ICOs. If an exchange sold ICOs, they had to return the money to investors.Number of Cryptos Worldwide. Source: StatistaIn 2021, China took the most severe measures in its history against cryptos. As Bitcoin hovers around $55,000, China’s State Council announced a formal ban on crypto mining. Shortly after, the hash rate on Bitcoin’s network dropped 50%, with Bitcoin’s price plunging to about $30,000 in the ensuing months. Bitcoin US Dollar Price. Source: StatistaAlong with the Bitcoin mining ban, China’s regulatory bodies outlawed all crypto trading and transactions. It is also illegal for residents to send crypto and for businesses and banks to accept coins like Bitcoin and Ethereum. Despite the ban, there are no specific policies against holding digital assets, so Chinese residents who already have crypto in a wallet are not violating any current laws. Why China Banned CryptosSeveral factors drove China’s decision to ban cryptos. These include: Concerns about consumer protection due to the association of cryptos with scams and
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