Arguably, China’s relationship with Bitcoin (BTC) and cryptocurrencies has been quite tense over the years, while activity was allowed, albeit partially.
But This relationship seems to be coming to an end, as China, over time, has reinforced the bans on multiple occasions, adopting various approaches to achieve it.
The most recent ban, which CriptoNoticias reported Today, it was a reiteration of the People’s Bank of China, the central financial institution of that country, to remind all its citizens (and the world) that Bitcoin and cryptocurrencies are absolutely prohibited in their jurisdiction.
Any citizen or business that makes transactions would be engaging in an illegal activity and would be sanctioned according to the laws, the authorities warned today.
As we reported in CriptoNoticias in May 2021, China has banned Bitcoin at least 7 times. But the restrictions continue and impact the various aspects of the use of cryptocurrencies, their markets and ecosystem.
Next, we will see 4 different ways in which China has sought to ban or veto the use of Bitcoin on its territory over the years.
Banks accompany the prohibitions of the national government
The first restriction came as early as 2013 , when bitcoin was a puppy that was taking its first steps and there were not many alternative cryptocurrencies.
On that occasion, the restriction was directed against banks so that they would not allow transactions related to cryptocurrencies such as, for example, an operation purchase of BTC by bank transfer.
Last June, the government again prohibited banks from allowing these transactions, which generated a commitment on the part of these institutions to achieve it.
Also, in May 2021, payment institutions and applications were urged not to offer any type of service that would allow activities with cryptocurrencies. The market volatility of these assets was taken into account as one of the risks with which the authorities justified the measure.
This type of justification has also been cited to apply the law, such as the cryptocurrency money laundering presumption that led to the dismantling of 380 groups and the arrest of 2,400 suspects in July this year. According to the authorities, the cryptocurrency funds originated in cases of telephone fraud.
Close the doors: exchanges of Bitcoin are banned from China
Other The way to prohibit the use of BTC by China has been through shops and businesses that use cryptocurrencies, or that are the access point for products and services that bring users closer to cryptocurrencies.
Such is the case of cryptocurrency exchanges, which were banned in 2017. Since then, exchange houses such as Huobi and Binance have chosen to flee China and base their operations in other regulatory jurisdictions.
However, the authorities have followed up on this and in July of this month CriptoNoticias reported how access to the Binance website was being blocked, preventing users from in China will continue to operate in this s itio.
Advertising and marketing on Bitcoin is prohibited in China
Recently, in July 2021, the authorities detailed that activities related to cryptocurrencies are prohibited, including trade shows, advertising pieces and other activities and services. The companies have complied.
In this sense, it is worth remembering the bans on holding public events on cryptocurrencies in hotels and shopping centers, which the city of Guanzhou also joined, CriptoNoticias reported in the year 2018.
The same has happened with ICOs ( Initial Coin Offers ) or in Spanish, Initial Coin Offer, which were banned in 2017, but in February 2021 the ban was reiterated with a decree that came into effect in May.
The last link: Bitcoin and cryptocurrency mining
In addition to the ban that we reported today, the final thrust for the use of Bitcoin cryptocurrencies in the Chinese territory has been the veto against mining, which began in May of this year.
These measures were adopted by multiple regions of China, where in some the residents were asked to report the presence of mining farms.
While in the past it was warned about the centralization of Bitcoin mining in its territory, currently, this activity in 8 provinces of China, which has generated a massive exodus of miners to other areas of the world such as the US and Kazakhstan. These measures would have been proposed in 2019, under the excuse of energy waste.
Now, miners are taking advantage of other energy options around the world freely, as in the state of Texas, USA. In the US, or in Paraguay.
Some specialists consider that China has banned mining seeking to end Bitcoin, but clearly, the decisions of a government do not harm the cryptocurrency and original decentralized protocol.
The price of Bitcoin may suffer a bit with rumors and news, as has also the hash rate, but it is really China that prohibits itself from participating in a technology that is revolutionizing the world. Let’s keep calm.