Why has China declared war on bitcoin and digital currencies?

[SectorZero]

They have already "banned" bitcoin like 10 times past 4 years without success. This is nothing new, they ban everything that is great about the internet.

They have never banned Bitcoin outright. This seems to be a common misconception. They have banned ICOs, exchanges, P2P exchanges (that served as a loophole for the initial ban), and they're currently sitting the fence on mining. Holding and trading are still fair game, but who knows how long that will last.

Either way, China is no longer the giant it once was in trading volume, and the remaining traders have already learned how to sidestep regulations. An outright ban at this point shouldn't be too crippling in the short term, FUD aside.

Right you are! China has never banned bitcoin outright. Because that can't be possible for them. So they have taken a phased approach. First they banned ICOs because that was a channel of dirty money flowing in to their economy. I have seen a lot of Chinese scammers active in the ICO market prior to China ban so it was a good news for the entire crypto community.

Now China is trying to ban the mining operations because a communist country doesn't believe in people empowerment by sidetracking them. They follow heavily centralized policies. Crypto is one way that can't be properly tracked and taxed because of its pseudo anonymous nature. So the Chinese government are not getting the proper revenue from these crypto related market. So they are trying to curb it down.

But China is not anymore the superpower of crypto market. If China ban all crypto related activities outright, the market will react for a short span. But I don't think any big impact will be seen for China's exit. Also the Chinese government knows that it is impossible to control the entire crypto market in China. So those who want to use it, they will continue using it. Absolute ban can't be achieved practically.

Yes, the market will not suffer much from the ban of bitcoin in China. But everyone knows that the news from China only to speculate. I think in the near future and this speculator
crypto market will win. This and the Chinese government itself already understands, we are waiting for positive decisions from them.

[1715688843]

1715688843

[1715688843]

1715688843

[1715688843]

1715688843

[Name: Claudio]

First they try to ban digital currency because in first I think they were also afraid on its sudden growth and some business in China will be affected by this decentralized thing that people can earn without paying tax and without working outside their house and I believe if almost of the people in China will be working in home mining and making trading, so I think they put a little barrier for the people to be on their usual self and work.
No offense but their is possible like this, imagine how many people already left their work and decided just to be at home and do bitcoin?

[vessing]

The main reason for excluding such a scenario is that the current closed economic system in China limits the possibilities for innovation. Chinese companies are good at copying the ideas of others, but in general they are not great inventors (except for the latest advances in solar technology and payments).
Closed planned economies do not encourage open innovations, it is impossible to give the order to invent through the state dictatorship.

[Sandeep24]

I think China wants to control world economy with their own currency but near future Bitcoin will be accepted by China legally.

[Aikidoka]

Maybe they want to create their own coin and have people invest in it. So if they already are using Bitcoin in which it will gain popularity across the country, their new coin will not be as valuable as bitcoin. On the other hand, maybe because bitcoin is threat to banks.

 Instead of relying on banks, people prefer relying on the blockchain. And that is what I would choose actually. Also, China is overpopulated, so the more people use Btc, bigger the threat arises.

[Mukarram Tariq]

MOST POPULAR

Beijing’s assault on bitcoin has surprised observers. Photo: Reuters
ECONOMY
Why has China declared war on bitcoin and digital currencies?
Ban on initial coin offerings and the closure of exchanges kick off Beijing’s offensive

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 night saying they would shutdown all trading between bitcoin and the yuan by October 31. A day earlier, BTC China, a Shanghai-based cryptocurrency exchange, said it would stop trading as of September 30.

The cease of operations of the three biggest cryptocurrency exchanges, along with at least 20 other smaller exchanges in China, shows a centralised effort from Beijing to curb or even eradicate cryptocurrencies on the mainland. The government’s decision pushed bitcoin prices below US$3,000 briefly before they rebounded over 20 per cent.

[BitHodler]

Instead of relying on banks, people prefer relying on the blockchain. And that is what I would choose actually.

Banks could also adapt to how the blockchain is gaining popularity. Would you accept using a bank if they completely rely on the blockchain instead of their own legacy infrastructure?

Banks will never allow you to enjoy the perks of an immutable ledger, so you will be dealing with a ledger which grants them the freedom to reverse and even remove transactions completely if they so wish.

Banks technically don't even need to use the blockchain. They can just set up a similar construction where they have a copy of every bit of data stored in plenty of different locations simultaneously.

[lynttrs]

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?

Bitcoin has already caught the attention of the Chinese government with many of its people getting interested with it. But they are not totally against cryptocurrency. There are just making some regulations on it. They're just trying to manage it. They are still studying it. They also see the potential of bitcoin.

[bitcad4u]

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?

Bitcoin has already caught the attention of the Chinese government with many of its people getting interested with it. But they are not totally against cryptocurrency. There are just making some regulations on it. They're just trying to manage it. They are still studying it. They also see the potential of bitcoin.

But I don't think so.China government officially announced,to inverse their people in Gold and Silver instead of cryptocurrency investments.If they have a idea to regulate the cryptocurrency,why don't they asked their people to inverse in cryptocurrency.They want to improve t government treasurer by the investments from their people.

[Faeton]

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 is not yet going to declare war on the Crypto-currency. It is looking for its own way of its implementation, restriction and regulation. This is evidenced precisely by the hesitant and contradictory actions of this government when introducing such prohibitions and restrictions. It is trying to protect its economy from the possible negative impact of the crypto currency, and since September of last year it has clearly stated that it considers the crypto currency to be a threat to its economy, since the crypto currency allows uncontrolled withdrawal of its funds from the country. The ban on mining bitcoin means fighting for economical consumption of electricity. At the same time, there was information that in China they are going to resolve the ICO process, but under the control of the government. This will just be a positive moment, as it will protect the rights of investors.

[warrior333]

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 is not yet going to declare war on the Crypto-currency. It is looking for its own way of its implementation, restriction and regulation. This is evidenced precisely by the hesitant and contradictory actions of this government when introducing such prohibitions and restrictions. It is trying to protect its economy from the possible negative impact of the crypto currency, and since September of last year it has clearly stated that it considers the crypto currency to be a threat to its economy, since the crypto currency allows uncontrolled withdrawal of its funds from the country. The ban on mining bitcoin means fighting for economical consumption of electricity. At the same time, there was information that in China they are going to resolve the ICO process, but under the control of the government. This will just be a positive moment, as it will protect the rights of investors.

ICO is under government control. LOL. Tell me one successful example of something that's run by the state. Any regulator pursues its goals and they are often aimed at overcoming resistance to the laws of the market. That's why I don't believe in government projects. I think that other investors will also think.

[Bros_3]

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 night saying they would shutdown all trading between bitcoin and the yuan by October 31. A day earlier, BTC China, a Shanghai-based cryptocurrency exchange, said it would stop trading as of September 30.

The cease of operations of the three biggest cryptocurrency exchanges, along with at least 20 other smaller exchanges in China, shows a centralised effort from Beijing to curb or even eradicate cryptocurrencies on the mainland. The government’s decision pushed bitcoin prices below US$3,000 briefly before they rebounded over 20 per cent.

[Oliveir]

That was an issue before since, but as of today hundreds of ICO project is built and created by Chinese and the main investor and funds source is from China itsellf and many Chinese has many Bitcoin no during the dips, I think as of today they are going friendly with cryptocurrency.

[Oceat]

That was an issue before since, but as of today hundreds of ICO project is built and created by Chinese and the main investor and funds source is from China itsellf and many Chinese has many Bitcoin no during the dips, I think as of today they are going friendly with cryptocurrency.

That issue was last year December and probably Chinese government are making some regulations to make it legal again that's why they were accepting the initial coin offering again. And Chinese government had nothing to do with this Bitcoin dips because from the other sources made news that it was from the hack attack from the Korean Exchange Hack.

[ConquerGold]

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.

True that. Since cryptos like bitcoin is decentralized, what they want to happen is for it to have regulations and be able to tax this type of trade. What's ironic is they don't regulate massive mining farms there as well as stop the manufacturing of mining devices there, like they want to make the most money out of the whole industry