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Author: Admin | 2025-04-28
November 25, 2022 Crypto World Ever since the inception of cryptocurrencies, China has been one of the leading countries in crypto mining and Bitcoin purchase. Every Chinese New Year country’s crypto enthusiasts would withdraw crypto from their accounts to buy gifts for their loved ones, and it would always lead to a bear market. With China’s huge population, it’s no wonder that the crypto market would react to every new legislation or major crypto event in the country. So what do we know about the infamous Chinese crypto ban? Is crypto illegal in China? Article contents1 How Many Times has China Banned Crypto?1.1 In 2020, China Bans Crypto Again1.2 The Latest Crypto Ban of 20212 Crypto Ban in China: Reasons2.1 How Is the Chinese Crypto Market Doing Now?2.2 Conclusion How Many Times has China Banned Crypto? Chinese government agencies have issued a string of increasingly restrictive but never conclusive legal prohibitions of various aspects of crypto a few years since its inception. All the while, China’s crypto industry has thrived. Every time Beijing starts taking new measures against Bitcoin, the running joke is that China has already banned cryptocurrency 18 times. The country has maintained a hostile relationship with its crypto industry since 2013, when it rolled out its first set of crypto restrictions. On December 5, 2013, the People’s Bank of China (PBoC), the Ministry of Industry and Information, and other financial watchdogs jointly issued a notice prohibiting banks from handling transactions related to BTC. According to the statement released at the time, Bitcoin was deemed a ‘special virtual commodity.’ The ban was imposed because the digital asset was not backed by any nation or central authority. And so, China began its stance against Bitcoin. In an attempt to buoy a weakening yuan and block money from flowing out of China illegally, the country’s central bank began to investigate the activities of crypto exchanges in January 2017. The investigation focused on exchanges’ approach to Forex management and anti-money laundering. On September 4, 2017, the country’s government decided to ban initial coin offerings (ICOs). At this point, ICOs were the hottest component of the crypto industry. In April 2019, China’s National Development and Reform Commission (NDRC) labeled Bitcoin mining an ‘undesirable’ industry in its preliminary list of sectors that should be encouraged, restricted or phased out by local governments. Bitcoin mining, which is a computer-intensive process of validating Bitcoin transactions
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