What will be the effects of China's central bank declaring all crypto illegal?

[Novice08091]

My taught On the Chinese people? It will make cryptocurrencies like Bitcoin illegal. Anyone who uses crypto becomes a criminal. I don't actually think their laws will get rid of crypto. Instead, people who don't like being under the harsh thumb of the CCP will utilize privacy cryptos like Monero. I won't be surprised if new internet and cryptocurrency privacy is developed because of the Chinese. There is now a market of potentially 1 billion people who want internet and monetary secrecy. Even if only 1 percent of the Chinese people want/need privacy crypto and internet that's a market of 10 million users! The CCP has planted the seeds of the rebellion that will throw them out of power and they don't even know it.

[KingsDen]

The battle of bitcoin is against the world leaders at large. It is not only against China. Till bitcoin begins to fight back, China will loose nothing. Yes, it is also the Chinese adage that says "an enemy of your enemy is your friend". This means that if China does what OP suggested, all other enemies of bitcoin will unit with China to follow sooth.
But you have nothing to bother about. The blockchain technology is technically synonymous to bitcoin. This technology is very strong and reliable beyond China destruction. Since it's the technology on which btc foundation is laid, you expect nothing than adoption by all.

[Charles-Tim]

I don't actually think their laws will get rid of crypto.

A single country can not eliminate bitcoin, see the recent China FUD, bitcoin was down 5% to a price around $41000, but just few days after, the price soar to over $50000. Bitcoin price now at $57000.

Instead, people who don't like being under the harsh thumb of the CCP will utilize privacy cryptos like Monero

If you want privacy, you can use bitcoin, but you will have to learn ways to have maximum privacy while having bitcoin, Monero is regarded as anonymous coin as no open ledger for transactions. Also, did you think Chinese (the citizens) will never use bitcoin again? They will and Chinese government will bring up another FUD. Bitcoin and decentralized currencies are not easy to restrict.

The battle of bitcoin is against the world leaders at large. It is not only against China. Till bitcoin begins to fight back, China will loose nothing.

I do not think so. One thing about bitcoin is that individual have their opinion, you will see a leader that will support bitcoin while another leader againsting bitcoin, that is just what bitcoin is. Another thing is how a country is operating, we can see how Donald Trump did not support bitcoin while Warren Buffett is a bitcoin critic, but yet USA has the highest number of bitcoin ATMs and high bitcoin adoption. China is more subjected to control by force from Chinese government.

[aprilnot]

I don't actually think their laws will get rid of crypto.

A single country can not eliminate bitcoin, see the recent China FUD, bitcoin was down 5% to a price around $41000, but just few days after, the price soar to over $50000. Bitcoin price now at $57000.

yes you are right, one country will not make bitcoin disappear. no matter what their efforts, bitcoin and crypto will survive. so I think they're doing something pointless. even if the country were to withdraw from all things crypto-related, it would only have a temporary effect. and will have no effect in the long term.

[Sterbens]

Bitcoin doesn't lean on China, so there's no need to worry. Didn't China from the beginning rely on and hold on to Bitcoin? China is a country that doesn't know how to return the favor. In the past they raised the name of Bitcoin as a driver of the digital economy, but the fact is that now that everything has been drained, China without thanks has responded to Bitcoin by throwing it away.
There is not the slightest bit of China behavior that we should emulate.

Bitcoin does not teach someone to forget, but gives advice so that we appreciate someone's work even though we don't know who Satoshi is. There are many things that we need to avoid, never rely on the Chinese economy once in a while, because it will only ensnare heavy shackles for you to pay in the future.

[Gyfts]

There are no effects until China steps up their enforcement, which won't happen for a while. CNY's sustainability is the key here. If China finds out their own currency is being edged out by crypto, they'll step up the enforcement and outright ban the currency, not just empty threats or proclamations that don't mean anything. This is also a country that is currently operating concentration camps of muslims by the millions, so expect them to aggressively come after crypto with extreme penalties. I don't think they'll be successful (as in entirely or significantly eliminate crypto transactions), necessarily.

[hatshepsut93]

The CCP has planted the seeds of the rebellion that will throw them out of power and they don't even know it.

Do you seriously believe that people will rebel because of crypto? China has been a totalitarian country for many-many years, and they literally mowed down people on the streets because they tried to protest. And currently hundreds of thousands of people are in concentration camps because of their religion.

What crypto ban means is that millions of people who would have liked to invest in crypto or use it will now won't do it because of the fear of being prosecuted.  For most people crypto investment is no something worth risking going into prison.

[Oceat]

China has been doing this for a long time and this is usually the reason why Bitcoin would slowly go to bear market after its recent bull run due to correction and their FUD but it looks like people are getting used to it because this is usually their strategy to make Bitcoin price to go down.

Yet people are learning over time and if only their country will ban Bitcoin it doesn't matter to any other countries as long as they don't ban it too since Bitcoin is a decentralized coin no one can directly ban it even if all of the country will going to ban from using it. Not unless if we can't access our wallet anymore if there's no internet is working but that's the worst case scenario.

[Lanatsa]

My taught On the Chinese people? It will make cryptocurrencies like Bitcoin illegal. Anyone who uses crypto becomes a criminal. I don't actually think their laws will get rid of crypto. Instead, people who don't like being under the harsh thumb of the CCP will utilize privacy cryptos like Monero. I won't be surprised if new internet and cryptocurrency privacy is developed because of the Chinese. There is now a market of potentially 1 billion people who want internet and monetary secrecy. Even if only 1 percent of the Chinese people want/need privacy crypto and internet that's a market of 10 million users! The CCP has planted the seeds of the rebellion that will throw them out of power and they don't even know it.

It is completely cant get rid off no matter how hard they do try on banning things because crypto is something that cant be handled out because people could make out transactions anonymously.

Trying out via ISP? People could make use of VPN and its untraceable if you do ask me and if you are a citizen out of those countries banning up crypto then accessing wont really be that a problem

but of course it would really be having corresponding risk once you do get caught.It do sucks but if you are really that serious or eager on dealing with crypto then you could still possibly do it.

[kryptqnick]

There doesn't seem to be any major negative impact, and there's no reason for the impact to be delayed, so I'd say we're fine. It truly seems that we're finally past the times when any FUD related to China caused something like -15% price drops and perhaps even some midterm negative impact (when combined with some other factors). It's kind of like marginal utility: it happened so many times, that it doesn't produce the same effect anymore. It's still bad news, of course, because a huge part of the population lives in China, so it does affect a lot of people. But at least the global market it doing okay.

[Wexnident]

Highly doubt they could identify anyone who uses Bitcoin though. If they were to ever set crypto users as criminals, users would just simply hide, and that's it. Using Centralized exchanges isn't a requirement after all, DEX's exist though it would probably be just a bit more difficult. Plus, Bitcoin isn't only used by the Chinese, it's a currency for the world, not for a country. Even if they ban it, people can simply move out, and even if they were completely left out, there would still be millions of others that would be willing to use it. Honestly, it doesn't have that much impact, nor should it. It affecting the market is simply because of FUD imo.

[Poker Player]

In addition to what has been said, I think there will be an effect like that of the dry law, in that at first all crypto-related activity will be reduced, but little by little people will increasingly learn how to escape state control, using Tor and p2p exchanges for example.

I understand that China, in its eagerness to control, has made a mistake by turning its back on the crypto world, and the US is about to make the same mistake with the very strict regulation that is on the way.

[cheezcarls]

China had so many ridiculous rules that limiting the freedom of their people, including that they declare all crypto transactions illegal. Imagine if I live there, I would be purely devastated and may end up in extreme depression. If they think that they could convince the whole world in doing the same restrictions like them, it won’t happen especially for crypto-friendly countries.

I know that the Chinese crypto community are not giving up finding loopholes and it’ll be difficult to trace them if transactions are done by P2P.

[Argoo]

So far, there has only been a statement from the People's Bank of China about the illegality of transactions in cryptocurrency. Although this bank is the central bank of this country, it does not have the powers that the legislature, or even the government of China, has. While lawmakers are silent and even a general decision on cryptocurrency at the government level has not been made, such statements should not be paid too serious attention. Apparently, it is only being clarified how the citizens of China will react in the event of a ban on transactions in cryptocurrency. And at the same time they will see how people will bypass such a prohibition and whether the government will be able to block it. This is not to do stupid things and not be a laughing stock in the eyes of the whole world.

[Zanab247]

Crypto has come to eliminate errors from the world economy. Many countries that made crypto to be legalized in their various communities are testifying about the positive impact Crypto has caused to their economy. Those countries that is trying to make crypto illegal in their countries, it will really affect their economy and also increase unemployment in the country because decentralized currency has the power to improve their economy. China just want to try if their centralized currency can take over decentralized in the areas of investment which it will hard for any centralized currency to take the place of decentralized currency in the world.
Those citizens that are used to crypto investment will never give up on crypto because they believed that crypto currency came to eliminate delay in transaction to any country that make it legalized.

[Koro-Sensei]

The CCP has planted the seeds of the rebellion that will throw them out of power and they don't even know it.

This is quite true. People of China know the importance of cryptocurrency and how it could possibly change the monetary system. They are one big community and Cryptocurrency is quite popular there. Its just that the CCP wanted to control everything which they cant do with crypto. In my opinion, people in china are smart enough to not know the alternatives which is the decentralised exchanges. P2p transaction at black market would also be a great option.

[fiulpro]

Rebellion is quite farfetched. We are talking about China where the government hides dictatorship under communism. They would be very strict with the laws if they do make them like that, people might have to move out or use some other methods, like using wallets which cannot be tracked for long term holding. But at the end of the day they would always be at a risk of being found out and being charged for it.
Much like India where the government every once in a while tried to pass the Bills that would make the cryptocurrencies illegal, causing a huge unrest and people can be behind the jail for more than 5 years for using them, but these laws are never passed because the amount of people using cryptocurrencies increases every single day and I do think that the government is not ready to disturb the peace of rest of the country because of that.
Here in China, I do think they might not affect the market value much, we have seen from the past examples as well but the young population involved in cryptocurrencies would defiantly move out of their country, causing massive brain drain. Plus since other countries are adopting bitcoins as well, they might have to change their decision to be in par with them as well.

[palle11]

I know that the Chinese crypto community are not giving up finding loopholes and it’ll be difficult to trace them if transactions are done by P2P.

China has been on the struggle to pull down bitcoin from the ban on ico in 2017. Most countries trying to ban on bitcoin has expounded the P2P transactions , the market is growing higher and India some more countries have been trading P2P. Contrary to the believe of China to stop bitcoin but it keep increasing the popularity.

[Congyang]

why so worried about it, in this world there are so many countries and that prohibits only one, why should we panic about it.
even if it is a country with a very good capability in the global economy that prohibits it, it will not have much effect.
even if there is movement in the chart caused by it, but you should see the recovery after it happened.

[Shenzou]

My taught On the Chinese people? It will make cryptocurrencies like Bitcoin illegal. Anyone who uses crypto becomes a criminal. I don't actually think their laws will get rid of crypto. Instead, people who don't like being under the harsh thumb of the CCP will utilize privacy cryptos like Monero. I won't be surprised if new internet and cryptocurrency privacy is developed because of the Chinese. There is now a market of potentially 1 billion people who want internet and monetary secrecy. Even if only 1 percent of the Chinese people want/need privacy crypto and internet that's a market of 10 million users! The CCP has planted the seeds of the rebellion that will throw them out of power and they don't even know it.

First of all this was a known thing to happen and it came at no surprise since they first started stating they will be banning the mining of bitcoin and cryptocurrency multiple times, and to be honest i was surprised that they haven't done this much much earlier since everything related to internet and any sort of freedom is prohibited or rather controlled by the government, and for the banks to declare the use of bitcoin illegal is not not going to have any impact because we are way past that point.