If you have been following the crypto market, and especially Bitcoin for that matter, then you already know the feud that exists between China and the idea of decentralization. There were times when the region was not only pro-crypto but had the most amazing and functional mining space for cryptocurrencies such as Bitcoin. Then something snapped, and the Chinese government was all against the crypto market and everything even remotely attached to it.
At the start of May, the price of Bitcoin started to plummet because of the hash rate, which was cut down because of a severe crackdown issued by China. This thing escalated pretty quickly, and soon enough, the whole crypto market crashed, also known as the mid-May crash of 2021. After that, China went nuts against Bitcoin and cryptocurrencies in general. It started imposing new stricter regulations on exchanges and financial institutions, limiting their collaboration with the crypto market.
China’s Ban On Crypto Assets
No one is allowed to make a single trade or invest their money into Bitcoin or any other cryptocurrency for that matter; if all of this was not enough, then you will be amazed at what’s about to come next. China has banded together a group of regulatory offices and commissions to make strict regulations that are not in support of Bitcoin at all. The only mission of this band of regulators is to make airtight regulations and policies around the use of Bitcoin.
They want to cut where it hurts, and for cryptocurrencies, it hurts when people are not allowed to trade in them or withhold them so they can make a solid profit when prices go up. In this whack a mole situation that China has developed around Bitcoin, it has clearly forgotten that decentralization at the core of its definition is a financial system that is not governed or controlled by a single entity. May that be a state, a country, or a region. So, at the end of the day, only people have their say in Bitcoin trading, whether they want to engage with it or not. China can, however limit the exposure of Bitcoin and other cryptocurrencies with locals but can’t stop them from taking part in such investments and trading schemes on an individual level.