Bitcoin in China: What’s going on in the crypto community

[Bitcasino.io Support]

Hello, Bitcoin fans

In 2017, China’s Internet Finance Association stated that Bitcoin lacks legal foundations and to protect its people from the market’s volatility, China imposed stricter regulations on the industry. In the past few years, China has been one of the most active countries in shutting down crypto activities from mining to trading.

This 2021, the Chinese government intensified their crackdown on crypto with another warning against using cryptocurrency in trading. While there is no law in China that stops people from using cryptocurrencies, the government has cautioned the public about trading and mining cryptocurrencies.

Provinces in China drove out crypto mining companies with the ban issued in May 2021. In the same month, the People’s Bank of China (PBOC) published a warning saying that any activity related to the exchange of fiat money for cryptocurrencies, conducting token-based trading, and providing services to facilitate crypto trade will be charged with a criminal offence.

However, China isn’t the only country to pursue a crackdown on cryptocurrencies. Thailand and South Korea also shared their sentiments with China and issued their own warnings to crypto users and trading companies. In June and July 2021, the Bank of Thailand warned people against using cryptocurrencies for payments of goods and services.

As one of the biggest markets of cryptocurrency as well as the centre of most operations in crypto trading and mining, China plays a big part in the crypto industry. With the turbulent relationship of crypto with China and other Asian countries, the future of crypto in Asia is fogged with uncertainty.


Is it the end of Bitcoin in China?

China’s crackdown on crypto and especially on Bitcoin has been intense ever since the first issue in 2017. With China announcing that they will be working on their own digital currency, it became even harder for the crypto industry to break through and resume normal operations.

Cryptocurrency experts like Fred Thiel, CEO of Marathon Digital Holdings and a proud member of the Bitcoin Mining Council stated that the crackdown might be part of China’s effort to ensure the adoption of the upcoming digital currency created by their central bank. Another motivator could be that China is looking for a way to stem the capital outflow via cryptocurrencies and stable coins.

Thiel also said, ‘China’s government is doing everything it can to ensure that Bitcoin and other cryptocurrencies disappear from the Chinese financial system and economy.’ All of these are concerning for traders, miners and investors and it raises the question: Is this the end of Bitcoin in China?

As events continue to develop in China, the answer to that question is still unclear. However, Bitcoin is a well-established digital currency that pioneered decentralized operations in finance. Even with China banning crypto, it will be impossible for them to completely take it down. Of course, events in China can still affect Bitcoin’s value, but these can be easily reversed as the operations move offshore and traders deposit their crypto in overseas exchanges.

Over the whole debacle on the crackdown, Bitcoin has remained resilient, with operations that were halted in China only moving offshore. Despite all the regulations enforced on traders and users, Bitcoin continues to thrive in China. Instead of relying on RMB transfer, Bitcoin traders are now using the US dollar-linked cryptocurrency, USDT to buy Bitcoin and deposit it on overseas exchange, effectively trading Bitcoin. In a way, it became an underground currency instead of completely disappearing in the crypto scene in China.

Hope in the midst of a crackdown

Cryptocurrency is still not recognized as legal tender in most Asian countries. This is a concerning issue that can affect the marketability of crypto since it limits the use of cryptocurrencies on trade. Fortunately, there seems to be a light shining through the turbulent relationship between cryptocurrency and China.

During a panel hosted by CNBC on April 19, 2021, deputy governor of PBOC, Li Bo called Bitcoin an investment alternative for the first time since the crackdown. Although the regulatory framework that China has on crypto remains unchanged, the Chinese government’s statement on Bitcoin being an ‘investment alternative’ is definitely an improvement from the former ‘non-legal tender’.

To clarify, China still doesn’t recognise Bitcoin or any other cryptocurrencies as actual currency. However, the government is starting to acknowledge that it plays a part in the area of investments and now regards it as crypto-assets. Li Bo mentioned that China is still looking into crypto and what regulations they can apply to prevent risks of financial instability in the country.

Is it safe to invest in Bitcoin in Asia right now?

Bitcoin remains in the legal grey area for most countries. Some are still trying to figure out how to regulate cryptocurrencies in an effort to prevent any criminal transactions to be made in these decentralized platforms.

Even simply searching for crypto-related keywords will yield no result in the popular Chinese media outlet, Weibo. It is a difficult time not just for Chinese traders but also for the rest of the crypto community all over the world.

China has a prominent effect on the crypto market all over the world. With the country’s persistent crackdown on crypto, Bitcoin trading from major cryptocurrency exchanges fell by more than 40% in June 2021. The price of crypto also fell below the $30,000 mark within the same month.

Despite the devastating effect of the intense crackdowns by China, the crypto community around the world continues to persist and thrive. In China, crypto investors are finding new ways to trade without using RMB and the China-based crypto exchanges that were not able to get a license in China like OKE moved overseas to continue operations. Meanwhile, halted mining companies in China gave way for other mining companies in the world to thrive and pick up the slack.

Crypto might be under fire right now but as other countries reject the innovative and decentralized way of crypto, other countries like El Salvador are making Bitcoin an official currency, while USA, European Union, Canada and Australia have taken a positive stance in the development of crypto as an alternative exchange.


Thanks for reading and please share your thoughts on this topic.

Regards,
Karl


Source: Bitcasino blog

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[Baofeng]

I don't think it will be the end of bitcoin in China, it will continue to grow despite the government's anti-bitcoin sentiment. Perhaps Chinese will still put some of their wealth into, just in case.

It is safe to invest in bitcoin in Asia? Absolutely, there are a lot of nations in that region that is bitcoin friendly, and there are a lot of wiggle room. And Asia will be one of the biggest adopters of bitcoin, despite China's hard line stance against it.

[tranthidung]

• The power of China in crypto community is decreasing.
• They still have power and use it repeatedly to spreads FUD.
• With recently Great HashPower Migration to other nations, in the long term, it will consequently decentralize the power on the network as well as reduce effects from China.

A good website to read, entertain and prepare knowledge when you are in crypto market. EndtheFUD.org. On that website, you will have many informative articles to read.

[ChiBitCTy]

I'll start off by saying I have zero love for China ( though I do have love for the Chinese people ).  They are an utterly corrupt, communist nation that treats it's people, animals etc like shit.  It pisses me off to no end. With that said, I think there is a good chance China does everything it can to keep bitcoin banned for some time.  When I first signed up for this forum, one of my first posts had to do with the "bitcoin ban in China", so it's certainly not like this is anything new.

[cabron]

China's government like we all know will intervene businesses to make sure they know what is going on, who is going to make money, who isn't and is there something to do. Example of intervention was what they did was with Jack Ma's IPO.

But with Bitcoin, the intervention they could do is very limited. They rather be sending crypto businesses out their country to disrupt someone else.country not theirs.  They are allowing people to own BTC but I guess because they know they can track these BTC users if trading with Yuan and the government can make money out of it.

[kryptqnick]

I never consider China even a place to visit, let alone a place to live. I don't think authoritarian regimes are okay or comfortable in any way. I think the market won't suffer significantly from all this news about China. These mining disruptions can cause temporary panic selling, but Bitcoin seems to recover from those quite fast these days. The only regret is that Chinese people have to leave under these restrictions. It's crazy that search results on cryptos are banned, but it's a part of the general censorship that covers many things in China, and it's not surprising that this country isn't supportive of a decentralized uncontrollable kind of money if everything they do is about gaining more control over lives of their citizens.

[LFC_Bitcoin]

China have banned it, censored influencers online, banished miners. They’re threatened by bitcoin because they’re developing their own gov, centralised shitcoin (CBDC) with an unlimited supply. China are going to lose because bitcoin is the future of finance & they’ve effectively omitted themselves.

Bitcoin will be fine, China banned Facebook, Google, Whatsapp & they’re all just fine. I feel sorry for the Chinese people living under such a Communist regime.

[rosebrand]

I don't think it will be the end of bitcoin in China, it will continue to grow despite the government's anti-bitcoin sentiment. Perhaps Chinese will still put some of their wealth into, just in case.

It is safe to invest in bitcoin in Asia? Absolutely, there are a lot of nations in that region that is bitcoin friendly, and there are a lot of wiggle room. And Asia will be one of the biggest adopters of bitcoin, despite China's hard line stance against it.

No matter the threats a country's government lay on it's citizens there can never pass out a 100% restriction, bitcoin is decentralized which means it doesn't expose users identity, the  Chinese government can only ban the mining of bitcoin and crypto related activities but the government can't stop it's citizens from getting involved in crypto because it's decentralized and can't know who gets involved or not, so it's not the end of bitcoin in china.

[Trojane]

Well, a developed country like china wouldn't just begin to accept unanimous facts by internet hype men and news carriers anyways. China has been on the long run of inventory practices and it has became a way of being successful and overulling the worlds economy to them. I believe they have been blindfolded by some kind of business strategies they developed in the past down to the present without looking at the theories behind bitcoin as crypto .. Things will change and i believe they will get to realise that the world's economy will oneday depend on crypto..

This is my view 😪😪

[glendall]

although China has banned bitcoin mining, censored online influencers, I guess china feels threatened by bitcoin on the grounds that they are developing their own government, centralized shitcoin (CBDC) with unlimited supply.

China will lose because bitcoin is the future of finance & they are effectively eliminating themselves.
let's see when bitcoin banned google, facebook, whatsapp. does bitcoin disappear or not buddy bitcoin will continue to run even though there are many restrictions

[romero121]

China always play a different game when the entire world is playing something common. This can be experienced with anything and everything. The cryptocurrency ban and other activities were there with other countries in the past. Those countries have taken back the ban and now it is free to use. Anyhow China's contribution to the growth of bitcoin in the beginning is very big. Maybe people could've never known about Bitcoin if these people hadn't come into the market.

Now these ban will shrunken the bitcoin community in the country, but the one who've used to it will continue using through the possible loopholes.

[Kemarit]

China have banned it, censored influencers online, banished miners. They’re threatened by bitcoin because they’re developing their own gov, centralised shitcoin (CBDC) with an unlimited supply. China are going to lose because bitcoin is the future of finance & they’ve effectively omitted themselves.

Bitcoin will be fine, China banned Facebook, Google, Whatsapp & they’re all just fine. I feel sorry for the Chinese people living under such a Communist regime.

Right, it was really the Chinese people who have been with bitcoin since the beginning will be the affected here. But their government doesn't care as it is authoritarian and will do what it takes for curb any form or freedom, including financial. And what a better time to censored everything that relates to crypto but now, since they are moving forward with their shitcoin.

[24Kt]

China have banned it, censored influencers online, banished miners. They’re threatened by bitcoin because they’re developing their own gov, centralised shitcoin (CBDC) with an unlimited supply. China are going to lose because bitcoin is the future of finance & they’ve effectively omitted themselves.

Bitcoin will be fine, China banned Facebook, Google, Whatsapp & they’re all just fine. I feel sorry for the Chinese people living under such a Communist regime.

Right, it was really the Chinese people who have been with bitcoin since the beginning will be the affected here. But their government doesn't care as it is authoritarian and will do what it takes for curb any form or freedom, including financial. And what a better time to censored everything that relates to crypto but now, since they are moving forward with their shitcoin.

If you know Chinese people, they can always change their stance to something. Give it few years, and maybe, they will change their perspectives towards crypto. If they see that other countries accepting crypto in their system with no problems at all and crypto community is doing great without them, they may change their minds. I fully understand if some of these Chines crypto miners or users will eventually move to other countries to continue what they are doing.

[tranthidung]

China have banned it, censored influencers online, banished miners. They’re threatened by bitcoin because they’re developing their own gov, centralised shitcoin (CBDC) with an unlimited supply.

They break basics of human rights and what they do is to protect their Communist regime. They protect beneficiaries for members of Chinese Communist Party (CCP). They are rare nations that still follow Communism on the world.

China are going to lose because bitcoin is the future of finance & they’ve effectively omitted themselves.

Because they do all things to get beneficiaries, I doubt that they won't lift current bans on Bitcoin mining. They have big industry from ASIC manufactures to mining, why do they get rid of such too easily?

Bitcoin will be fine, China banned Facebook, Google, Whatsapp & they’re all just fine.

They all will be fine without China. I agree. For Bitcoin, it is better if China has a smaller and smaller power in Bitcoin community.

[electronicash]

China always play a different game when the entire world is playing something common. This can be experienced with anything and everything. The cryptocurrency ban and other activities were there with other countries in the past. Those countries have taken back the ban and now it is free to use. Anyhow China's contribution to the growth of bitcoin in the beginning is very big. Maybe people could've never known about Bitcoin if these people hadn't come into the market.

Now these ban will shrunken the bitcoin community in the country, but the one who've used to it will continue using through the possible loopholes.

isolating their own people i guess. they always have a counterpart when it comes to technology outside them. when everybody has google, they have their own Baidu. there is nothing for us to do about it but the wealthy investors in the US are investing China even when their government can change rules all of a sudden.

they don't want people in their country to become richer because once that will happen, it will be chaos when one rich guy can unite a coup. i suppose the CCP acts the way it should to protect its interest. if you are among the Communist Party which Jackie Chan also wants to join i guess you'd do the same. 

for the crypto community, it's best to just move out. they wouldn't prosecute you in any way unless you operate within their jurisdiction.

[Darker45]

It is not only in Asia where crypto is fogged with uncertainty. Cryptocurrency is actually facing uncertainty in all parts of the world; in Africa, Europe, North America, and so on. I guess it is only in the areas of Latin America where Bitcoin is now facing more of acceptance than very tight regulations and crack downs.

Anyway, Asia is much more than just China. China is not everything there is Asia. Asia is made up of almost 50 countries. There are Asian countries like Japan, Singapore, and so on where the crypto technology is treated more as a financial innovation than a threat.

[Wexnident]

Well, it's China being China. Not that I'm offending anyone or anything, but it's been well known on how China wants pretty much everything inside their country to be under their control. They have their own social media platforms and what not, and we all know how they're trying to create their own crypto right? Though I don't think their stand would last after a few decades, that is unless, they have full control over their internet, like every inch of it. If yes, then there's no way for Chinese citizens to use Bitcoin other than migrating to other countries.

[ethereumhunter]

I guess it will work only for temporary and I am sure China government will allow crypto in the future. I think the government are preparing something behind that prohibition so they do not allow their people to use crypto. Maybe after their government launches their digital currency, the government will allow their people to use crypto again. There are many scenarios about what happens in China, but we do not know for sure and only guessing and speculating. But bitcoin will still grow, even if China government is not with bitcoin.

[junmisakiro]

China’s crackdown on crypto and especially on Bitcoin has been intense ever since the first issue in 2017. With China announcing that they will be working on their own digital currency, it became even harder for the crypto industry to break through and resume normal operations.

As we know that China is basically very fond of modern technological systems, of course they will always develop and create everything with developing technology, as well as digital currencies that they want to launch, but the Chinese government really hates the concept of decentralization which cannot be fully controlled by the government. So they restrict bitcoin in their country.

[DapanasFruit]

Officially the end of Bitcoin has already started in China and the government must be planning that in 2022 they will not anymore be dealing with this problem completely...that is OFFICIALLY! Now, isn't Bitcoin an unofficial digital asset in the first place? Yes, and that means that nobody can really stop anyone in China to deal with Bitcoin and other cryptos as long as one has the technology available to do so and as long as the government will not assigning to anyone suspected to be a crypto guy 24/7 and 7 days a week for surveillance. nevertheless, I am still happy that finally in 2022, the China influence on Bitcoin can be nil and with a big chunk of mining having migrated from China, there is now a big opportunity for green Bitcoin mining to happen in other countries.