cryptocurrency banned in china
China tightens financial control, crypto now fully banned
BEIJING – The Chinese government has issued a sweeping ban on cryptocurrency assets. In addition to previous prohibitions on trading and mining activities, China has now officially outlawed private ownership of digital currencies such as Bitcoin.
This latest move was reported by global crypto exchange Binance and is seen as a significant escalation of China’s stringent policies toward the digital asset industry.
Authorities have justified the ban as part of efforts to strengthen control over national financial flows and accelerate the adoption of the country’s official digital currency, the digital yuan or Central Bank Digital Currency (CBDC), according to Financial Express on Tuesday (3/6).
“This ban underscores Beijing’s strong commitment to centralising financial control and reducing reliance on decentralised digital assets,” Binance stated in a report published on its official channel (3/6).
The impact of the announcement was immediately felt in global markets. Bitcoin prices plunged sharply within hours of the news, while altcoins—particularly vulnerable to regulatory shifts—experienced even more volatile swings.
Nonetheless, some analysts believe the short-term effects may quickly reverse.
According to the same report, despite the ban coming from one of the world’s largest crypto markets, many seasoned investors see this as a strategic entry point amid depressed prices. They argue that regulatory-driven corrections are often temporary.
On the other hand, the move could also accelerate further decentralisation of the crypto ecosystem, especially within Asia.
Countries with more crypto-friendly policies may emerge as alternative destinations for industry players relocating from China.
Globally, the divergence in regulatory approaches to digital assets continues to widen. (EF/ZH)
China decleares all crypto- currency transactions illegal
China's central bank has announced that all transactions of crypto-currencies are illegal, effectively banning digital tokens such as Bitcoin.
"Virtual currency-related business activities are illegal financial activities," the People's Bank of China said, warning it "seriously endangers the safety of people's assets".
It is the latest in China's national crackdown on what it sees as a volatile, speculative investment at best - and a way to launder money at worst.Trading crypto-currency has officially been banned in China since 2019, but has continued online through foreign exchanges.
However, there has been a significant crackdown this year.
In May, Chinese state intuitions warned buyers they would have no protection for continuing to trade Bitcoin and other currencies online, as government officials vowed to increase pressure on the industry.
But Friday's announcement is the clearest indication yet that China wants to shut down crypto-currency trading in all its forms.
The statement makes clear that those who are involved in "illegal financial activities" are committing a crime and will be prosecuted.
And foreign websites providing such services to Chinese citizens online is also an illegal activity, it said.
Mining migration
The technology at the core of many crypto-currencies, including Bitcoin, relies on many distributed computers verifying and checking transactions on a giant shared ledger known as the blockchain.
As a reward, new "coins" are randomly awarded to those who take part in this work - known as crypto "mining".
China, with its relatively low electricity costs and cheaper computer hardware, has long been one of the world's main centres for mining.China, with its relatively low electricity costs and cheaper computer hardware, has long been one of the world's main centres for mining.
The activity is so popular there that gamers have sometimes blamed the industry for a global shortage of powerful graphics cards, which miners use for processing crypto-currencies.The Chinese crackdown has already hit the mining industry.
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