Why has China declared war on bitcoin and digital currencies?

[Snaic]

China’s government is starting an all-out war against bitcoin and other digital currencies by banning fundraising through initial coin offerings and shutting down all mainland digital currency exchanges?

The Chinese government never declared war on the Crypto-currency. They take it quite seriously and study the ways of its use and implementation. It even established the Institute of Digital Currency, which is studying this new phenomenon in financial relations.
Yes, the government of China in September last year announced that the crypto currency is a threat
for the economy of the country because it allows uncontrolled withdrawal of funds from the country. Since then, they are looking for their own ways of solving this issue. However, there was not banned crypto currency as it was done in some other countries. Recently, even the information appeared that there they are going to finally allow the ICO, but under the regulation of state bodies and that they will do so in order to protect the rights of investors.

[1713874683]

1713874683

[1713874683]

1713874683

[giffen]

From what I read recently, China created a government-backed fund to finance startups.
https://www.forbes.com/sites/ralphjennings/2018/04/26/china-is-tightening-its-grip-on-cryptocurrency-to-promote-rather-than-purge-it/#3ab4f6aa5482

But in general the attitude towards crypto remains restrictive in China, imho.
And I think that one of the most important reasons is the continuing fight against capital outflow. China experienced enormous flight of capital in 2016. Capital outflow reached $725bln that year. The situation became better in 2017 but the amount of "shadow capital flight" has been on the same level since 2015. And cryptocurrencies are among the instruments used to avoid capital controls.
I suppose that government will continue its battle against capital outflow and the crypto will remain uder pressure.

[Maxxbill]

China's government is starting an all-out war against bitcoin and other digital currencies by banning fundraising through initial coin offerings and shutting down all mainland digital currency exchanges. Two of the largest cryptocurrency exchanges in China, OKCoin and Huobi, issued statements on Friday.

[Mehedi72]

China’s government is starting an all-out war against bitcoin
and other digital currencies by banning fundraising through initial coin offerings
 and shutting down all mainland digital currency exchanges?

This is probably china thinks  Bitcoin as bubble  which can truns into zero or get scam anytime.
Furthermore china Ban Bitcoin due to the reason of Bitcoin is out of control and
China bank get worried about loss of their profit and there existence due to bitcoin.
And that's why they start drama with bitcoin along with all cryto currency and exchanges...
As a bitcoin lover,  also want that every single country will accept BTC soon...

[Oasisman]

Bitcoin has already spread around the world. A ban in one country can affect the entire market. Chinese traders will use the South Korean and Japanese exchange. Hashing power will be moved to other countries where there are a lot of cheap electricity. Bans can't stop bitcoin. The most reasonable solution is the legalization. But the government does not understand this.

Yeah, A certain ban to a specific country specially China, cant stop someone from doing or using Bitcoin transactions. Deapite of a strong Bitcoin ban in China, there were still chinese people who secretly trade cryptocurrency. Chinese government is one of the countries that has a very strict policy, and its not that they dont understand the idea behind Bitcoin, but their government were being threatend that they cannot control over their people financialy.

[richardsNY]

Chinese government is one of the countries that has a very strict policy, and its not that they dont understand the idea behind Bitcoin, but their government were being threatend that they cannot control over their people financialy.

If you properly regulate the centralized ecosystem, you as government can obtain as much control over people as you want. China however is too paranoid to even take that in consideration, and just want to make sure capital doesn't leave the country. I think it's safe to say that this is one of the main reasons they aren't happy with all the crypto developments. In most cases people wire funds to an exchange with foreign bank accounts, and that alone is something they at all cost want to prevent. It's not really a surprise at the end of the day -- their prior actions were indicative enough to not be surprised about everything that happened recently.

[tambok]

Chinese government is one of the countries that has a very strict policy, and its not that they dont understand the idea behind Bitcoin, but their government were being threatend that they cannot control over their people financialy.

If you properly regulate the centralized ecosystem, you as government can obtain as much control over people as you want. China however is too paranoid to even take that in consideration, and just want to make sure capital doesn't leave the country. I think it's safe to say that this is one of the main reasons they aren't happy with all the crypto developments. In most cases people wire funds to an exchange with foreign bank accounts, and that alone is something they at all cost want to prevent. It's not really a surprise at the end of the day -- their prior actions were indicative enough to not be surprised about everything that happened recently.

There is a leakage with what China wants to do right now, and we don't know the real behind it, but I felt that there was a deeper reason why they declared it, and why they banned bitcoin and some crypto but they have created their own, isn't obvious that they want to rule crypto too.

[Kemarit]

Chinese government is one of the countries that has a very strict policy, and its not that they dont understand the idea behind Bitcoin, but their government were being threatend that they cannot control over their people financialy.

If you properly regulate the centralized ecosystem, you as government can obtain as much control over people as you want. China however is too paranoid to even take that in consideration, and just want to make sure capital doesn't leave the country. I think it's safe to say that this is one of the main reasons they aren't happy with all the crypto developments. In most cases people wire funds to an exchange with foreign bank accounts, and that alone is something they at all cost want to prevent. It's not really a surprise at the end of the day -- their prior actions were indicative enough to not be surprised about everything that happened recently.

Yes, we can say that they are really paranoid because they are afraid on something they can't even control in the first place. Just imagine how much money flowing in and out without them at the middle, damn, the government will really be pissed off with that. And the solution of them? Make a U-turn and declare war on crypto. The good news though is that crypto survived the scare and we did continue to survived without them in the equation. As far as the effect on the Chinese crypto community? I don't know but I think it didn't deter them from engaging underground just to continue with crypto trading.

[imsotiredofmoviereboots]

It's their right, but seriously do they do it? As far as I know, most of the bitcoins belong to the Chinese and they make good money on it.

That's true. Their government might just be concern knowing that a lot of their people's money are just wasted on scams so they became strict towards it. But it's very obvious that China really do want to get into bitcoin after all.

[kashkarev55@mail.r]

China has declared war on cryptocurrency, only because it is impossible to control the outflow of capital from the country through cryptocurrencies, thereby causing economic imbalance of the foreign exchange market.

[Tigorss]

In due time, all companies in China simply can not serve Bitcoin transactions. There will be sanctions for those who violate, although the current sampat form of punishment is still not ascertained. They think bitcoin is very dangerous.

[Vektrum]

China’s government is starting an all-out war against bitcoin and other digital currencies by banning fundraising through initial coin offerings and shutting down all mainland digital currency exchanges?

China has never declared war on a crypto currency. They pursue the interests of their country, although they may also make a number of mistakes. They are looking, as always, their own way of using crypto currency. If the government does not find other solutions to this issue, China will return to the world of decentralized crypto currency. So far we see that such opportunities still exist.

[KorakPawon]

China is the most active market for bitcoin trading on exchange exchanges. But lately the Chinese government plans to block domestic access to home and overseas platforms that allow for centralized trading. There is no definite clarity only China plans to make their own digital currency.

[Mhd-Bobbi]

what makes the Chinese state fund raising. there is the same with Indonesia. whether they are not pushing this bitcoin to develop. I do not understand from other countries forbid bitcoin to flourish. I really want the currency cryptocurrency used as a means of payment. and can be used from other means.

[Sandeep24]

China government wants overall control on Chinese crunncy but digital currency lile Bitcoin is most popular in China as well as in the world that's way China is fearing from digital currency.

[Anees1122]

I think the china government wants to control every transaction that the citizens make
It is definitely that there are major problems in the economy of China

[Tigorss]

they make their own digital money and close access to other digital currencies into their country who wish their own coins that they make can grow like bitcoins and others.

[FUD Expert]

China is still leading the way in making new ICOs and exchanges so this war that they are trying to wage are futile up to this point. Their just waiting for a good timing to get back at it again.

[QuickS22]

It's their right, but seriously do they do it? As far as I know, most of the bitcoins belong to the Chinese and they make good money on it.

[KorakPawon]

China’s government is starting an all-out war against bitcoin and other digital currencies by banning fundraising through initial coin offerings and shutting down all mainland digital currency exchanges?

They have closed down the exchanges some time ago, but it's not set in stone. What I mean by that is, there's a reason for the ban and it's not "the good of the people" or a similar slogan. They are doing it to make all crypto businesses file for a government issued license and that will require them to pay a certain fee. The license will also make sure only certain people are allowed to run an exchange and this will of course be members of the ruling party or their family members.
IMO by this time next year they will announce the plan to tax and regulate exchanges.

actually this issue has long been discussed China is often open the lid How the use of Bitcoin in their country for various reasons one of the most important thing is the Central Bank of China has banned local companies to conduct transactions related to the virtual money. The ban orders follow fears of a sell-off that could bring Bitcoin's value down to 60 billion dollars from the total since the cryptocurrency transaction reached its highest point.