Why does China have an unfriendly policy on cryptocurrencies such as bitcoin?

[Jones chen]

Why does China have an unfriendly policy on cryptocurrencies such as bitcoin?Will the future change?

[YuginKadoya]

In my opinion I think they are just implementing rules for security reasons and they rather use this kind of method to keep the public safety from Scammers, Criminals, Terrorist, And all illegal activities, that would use cryptocurrency as a method of getting money I really think they are thinking ways to surely get all these illegal set aside from the transaction of cryptocurrency but these will cause problem with privacy of certain individuals.

[Jones chen]

China is a country with capital controls, and bitcoin affects foreign exchange reserves.

[GardenChristian]

Why does China have an unfriendly policy on cryptocurrencies such as bitcoin?Will the future change?

The Chinese government has great control over the entire economic market. They need to control the market economy, but the currency is fragmented and anonymous, the Chinese government can't control the currency, so they choose to ban the currency, it is not bad for them

[Aliya Taj]

Countries have individual reasons to be hostile on crypto, including the analogy that crypto posses a threat to countries economic development, foster crime, among other reasons

[Slow death]

Why does China have an unfriendly policy on cryptocurrencies such as bitcoin?

humm... china has a dark politics that wants to control everything that its people do, they are authoritarian. restricting the internet, restricting the press, restricting reproductive rights and freedom of religion. with these all constraints do you think they would allow their people to use a decentralized currency? Of course they would not allow their people to use bitcoin.

Will the future change?

I doubt very much that this happens, just to see that the Chinese government does not seem to change

China To Develop Centralized Crypto, Protects Yuan Against Non-State Digital Currency

The People’s Bank of China (PBoC) will continue to apply strict measures on virtual currencies as part of its strategy for protecting and strengthening the yuan (RMB), according to a statement published March 29 on the bank’s website.

[mOgliE]

Hi,

China is... a complex country actually.

Officially, this is one of the few countries in the world that isn't capitalist. In reality... Well, this is quite complex. The "communist" characteristic allow the country to implement laws that are really limitating people's actions. On the other hand, this country is the most trading country in the world. The Chinese government is perfectly aware of the opportunities offered by capitalism and they use them. A lot.

They trade, they buy, they offer cheap workforce.

Regarding bitcoin more specifically, I'd say that the existing regulations and the ones that could be implemented next, only reflect what China is. Making profit is ok, as long as officials can benefit. So bitcoin (and other cryptos) is bad because earnings won't be controlled.

[lizardbtc]

Why does China have an unfriendly policy on cryptocurrencies such as bitcoin?Will the future change?

Let's look it in this way, creating and issuing your own currency is not something many countries will allow you to do. If you try to create one you may end up in prison. The situation is different with cryptocurrencies as with it being peer-to-peer you can't kill it. Some country will allow it, some won't but ultimetly at the end of the day it's nearly imposbilbe to shut down. So China is doing what it has to do, it is looking at the market closly and trying to regulate some aspect of it, the one they have the control of. Cryptocurrencies are in some grey area in most countries and China is simply doing things, the leaders of country see as things that are done to protect some part. USA is also looking into regulating it, but so far they don't have that "unfriendly policy" but from my understanding both China and USA don't like the fact how most ICOs are done and the way they collect money.

[squatz1]

In my opinion I think they are just implementing rules for security reasons and they rather use this kind of method to keep the public safety from Scammers, Criminals, Terrorist, And all illegal activities, that would use cryptocurrency as a method of getting money I really think they are thinking ways to surely get all these illegal set aside from the transaction of cryptocurrency but these will cause problem with privacy of certain individuals.

It's not this in the least, they're trying to ensure that they keep control over their currency -- as a much higher number of people (percentage wise) in China are using crypto, or were using crypto, than in the United States. So China felt as if it was losing control over their countries currency and that was a problem to them.

So yeah, you can't frame this like China caring about their people -- that's not even close to what it is.

[virendarnagpal]

 Bitcoin And Chinese Internet Stocks Beat Wall Street
Bitcoin and Chinese Internet stocks have left Wall Street in the dust, so far, in 2017, making some investors multi-millionaires quickly. At least investors who poured money into them early.


https://www.forbes.com/sites/panosmourdoukoutas/2017/08/11/bitcoin-and-chinese-internet-stocks-beat-wall-street/#402a3c64e262  

Though governments will be liking to regulate bitcoin and other cryptos too.

[Xester]

Why does China have an unfriendly policy on cryptocurrencies such as bitcoin?Will the future change?

As you know China is a very big country and there are thousands of syndicates and smugglers are residing in that country. The Republic of China's one biggest problem is money laundering  and bitcoin have become a vector for smugglers and criminals to move out dollars from China. China has a strict policy on sending US dollars out of the country and they even set a limit as to how much a family per year can send an amount of dollars. Thus with those syndicates and smugglers using cryptocurrencies as one way of smuggling money out of China the Chinese Authority have decided to place a strict regulations on the exchanges. Those exchanges on the other hand have failed to comply with the new regulations and have decided to shut down its operations.

[Xavofat]

China has quite an authoritarian stance on most things that are often taken for granted in Western countries.  The Internet in general is heavily censored, with many major sites such as Google and Facebook being restricted.

The Chinese government also has a lot of control over the economy.  Much of Chinese industry is publicly owned, and there are currency controls - for example, the government sets official exchange rates on currency.

It's not at all surprising that this would result in relatively strict control over Bitcoin.  Bitcoin is difficult to control, so I think they're hoping that authoritarian regulations will deter people from buying or using it.

[Doge dealer]

having an unregulated industry such as the crypto currency industry can spell disaster for an economy such as china's , bitcoins cant be controlled at this point in its existence and there lies the danger for the Chinese government , as the Chinese people are heavy investors in the crypto world , the fact that bitcoins are decentralized it will pose an issue for them to properly plan because they cannot say with any certainty who and what amount of crypto that person has so definitively it will affect their fiscal planning if its allowed to just be "free" , remember the Chinese carefully plan there economy , planning every single detail , bitcoins provides a serious obstacle as you really cant plan definitively around bitcoins at this point. your also able to move serious amounts around the world in an untraceable manner and this can have serious impacts for them in their effort to be world leaders.

[Anti-Cen]

It might have something to do with drugs, sex services, gambling and ransomware viruses which Bitcoin has been
built upon and now we have ICO type scams too.

China did not kill bitcoin, miners did with crazy high fees so no one trusts them anymore and they are trying to have the finger
point at anyone else but the guilty parties and if you look at peak fees then the prices has been dropping ever since 

[brampower]

In my opinion I think they are just implementing rules for security reasons and they rather use this kind of method to keep the public safety from Scammers, Criminals, Terrorist, And all illegal activities, that would use cryptocurrency as a method of getting money I really think they are thinking ways to surely get all these illegal set aside from the transaction of cryptocurrency but these will cause problem with privacy of certain individuals.

Are you telling that only China in the entire world is worried about these things you mentioned. Some third world countries have banned bitcoin and even they are claiming that it will be used for money laundering and terrorism, which is not entirely true, i am not sure why they have an unfriendly policy towards cryptocurrency but i am sure they will regulate it in the future with strict regulations in place.

[thelemot]

Why does China have an unfriendly policy on cryptocurrencies such as bitcoin?Will the future change?

I think china does not approve of crypto because people can avoid taxes, maybe that's a big problem for every country. if someone runs his money without having to pay taxes

[annasadia]

I think there is no specific rules and regulations regarding cryptocurrencies that is developed by China Govt. So it would be hampered by scammers and blackhatted people. And realizing this, they are now working to develop a proper system on it.

[mktpromp]

It’s tough to explain actually, as you can see, china is a big country. There are many different things are going on there, before understanding the reasons, you have to understand how china works.

[PilosopongTacio]

Why does China have an unfriendly policy on cryptocurrencies such as bitcoin?Will the future change?

Its probably because they cant control cryptocurrency.
Having said that, it might also be about the implementation and regulations. Even the idea of imposing taxes on it.
Also there is the issues of fraud and their government might think that cryptocurrency is being used for criminal activities and for other illegal transactions..

[VitKoyn]

Why does China have an unfriendly policy on cryptocurrencies such as bitcoin?Will the future change?

We all know that the government of china is know for restricting or banning a lot of things that they can't control or anything that are against their beliefs. Bitcoin and other cryptocurrencies are decentralized in nature so no one can dictate the price and no one can control it, so it is not surprising that they also ban those exchanges that lets people buy and sell cryptocurrency and invest in crypto crowdfunding using their local currency. Will the future change? It depends, it is still possible that they will reverse their decision about cryptocurrency if they are willing to regulate it, if not there is no chance.