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

[adzino]

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.

Nothing will happen to the crypto market. Maybe a small crash and it will recover soon. Didn't the central bank already issue warning to their people about bitcoin? They have been doing this for years and now literally no one cares. You are correct. Those laws won't get rid of crypto currencies. People will still use it. As long as they are not getting involved with fiat or the banks, there is no way the government can do anything.

[Hamphser]

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.

Nothing will happen to the crypto market. Maybe a small crash and it will recover soon. Didn't the central bank already issue warning to their people about bitcoin? They have been doing this for years and now literally no one cares. You are correct. Those laws won't get rid of crypto currencies. People will still use it. As long as they are not getting involved with fiat or the banks, there is no way the government can do anything.

There might be some effects but those would be temporal because basing off with those strong supports below then there are lots are ready to accumulate or buy whenever the price had plummeted down neither because of the sentiments been causing or nothing at all.

They can declare all those bans that they want but doesnt mean that this market would be over. Support and demand are still strong as ever and would become more stronger as adoption is on the move.

China is just a single country even though finance capabilities are high but we know that the market doesnt only spin up on a single country.

[cabron]

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.

Nothing will happen to the crypto market. Maybe a small crash and it will recover soon. Didn't the central bank already issue warning to their people about bitcoin? They have been doing this for years and now literally no one cares. You are correct. Those laws won't get rid of crypto currencies. People will still use it. As long as they are not getting involved with fiat or the banks, there is no way the government can do anything.

There might be some effects but those would be temporal because basing off with those strong supports below then there are lots are ready to accumulate or buy whenever the price had plummeted down neither because of the sentiments been causing or nothing at all.

They can declare all those bans that they want but doesnt mean that this market would be over. Support and demand are still strong as ever and would become more stronger as adoption is on the move.

China is just a single country even though finance capabilities are high but we know that the market doesnt only spin up on a single country.

It did temporarily brought the price down when they announced it and quickly bounce again.
China had isolated itself again from this new economy which other countries the rest of the world may even move into despite having CBDC of each country.

China may have different views on this so we'll just know what really will happen after years, a hundred years later we may know what else will happen but right now, crypto is going to reign.

[Darker45]

This is going to become a cat and mouse game. Let's see how good China is in monitoring their citizens all over the web. It is easy for a totalitarian state to restrict its people's movements in the real world, but it's quite different when it comes to the online universe.

I don't think the Chinese people are that naïve as to do and say everything the CCP tells them to even in their online lives. China's rulers will definitely be not as successful in the online world in terms of control. The Chinese Bitcoin supporters won't stop buying or HODLing Bitcoin simply because the country's central bank declares it illegal.

[Hydrogen]

Here is a great chart I saw comparing china's bitcoin bans with contrasting price moves afterward.

Newcomers to crypto may view chinese bitcoin bans as a doomsday event where the sky is falling. Historical trends however are not that bad.

China's economy may take a big hit as crypto miners exodus from the country. Taking with them considerable capital, electrical consumption, jobs and economic growth which are attributed to cryptocurrency innovation.

If china banned the wheel, shortly after it was first invented. Undoubtedly, they would suffer in ways. Perhaps the same can be said of their stance towards crypto.

[milewilda]

Here is a great chart I saw comparing china's bitcoin bans with contrasting price moves afterward.

Newcomers to crypto may view chinese bitcoin bans as a doomsday event where the sky is falling. Historical trends however are not that bad.

China's economy may take a big hit as crypto miners exodus from the country. Taking with them considerable capital, electrical consumption, jobs and economic growth which are attributed to cryptocurrency innovation.

If china banned the wheel, shortly after it was first invented. Undoubtedly, they would suffer in ways. Perhaps the same can be said of their stance towards crypto.

If you are just new into this market then you would typically freak out but if you had been get used to into this market then you would just say "meh" here we go again kind of lines.
Banning and events like these arent something new.It do make out some fuds and talks about crash in price but it didnt happen but instead those movements are just ordinary ones
No matter how hard the market would crash or price decrease it would always be having that kind of recovery in the end of the day.

[Kasabus]

This is going to become a cat and mouse game. Let's see how good China is in monitoring their citizens all over the web. It is easy for a totalitarian state to restrict its people's movements in the real world, but it's quite different when it comes to the online universe.

I don't think the Chinese people are that naïve as to do and say everything the CCP tells them to even in their online lives. China's rulers will definitely be not as successful in the online world in terms of control. The Chinese Bitcoin supporters won't stop buying or HODLing Bitcoin simply because the country's central bank declares it illegal.

Chinese people are basically more independent today maybe because they can live on their own even without the help from the government. And with this bitcoin investment, i know that helps them a lot to generate profits. So i really believe not just the crypto community itself but also the Chinese bitcoin supporters are not affected that much because they can transfer into another place where crypto is legal if they want it too. But knowing China, even if they say the ban is permanent, i know they will eventually lift the ban once they see the whole world has adopted bitcoin and crypto. Otherwise, they may be left behind from the existing revolution.

[johnyj]

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.

There are many misunderstandings regarding the chinese ban of cryptocurrency trading.

The original text from authority is:
（二）虚拟货币相关业务活动属于非法金融活动。开展法定货币与虚拟货币兑换业务、虚拟货币之间的兑换业务、作为中央对手方买卖虚拟货币、为虚拟货币交易提供信息中介和定价服务、代币发行融资以及虚拟货币衍生品交易等虚拟货币相关业务活动涉嫌非法发售代币票券、擅自公开发行证券、非法经营期货业务、非法集资等非法金融活动，一律严格禁止，坚决依法取缔。对于开展相关非法金融活动构成犯罪的，依法追究刑事责任。

It clearly says, the cryptocurrency related exchange business is illegal, means exchanges and centralized dealers are illegal. But it did not say the trading of cryptocurrency is illegal.

Of course it will be difficult to trade without centralized exchanges, but there are still decentralized exchanges and many private person that trades cryptocurrency, those are not illegal unless you trade daily as a business. For example, a chinese family, farther buy 0.1 ETH from his son, who mined ETH using his graphic card, how is that illegal?

And  when a foreign dealer trades with chinese people on a foreign platform, even by chinese definition that service is illegal, but in practical a chinese law have no effect to any person/entity that is not in china

So the whole chinese cryptocurrency ban is aimed at centralized chinese exchanges and professional chinese dealers, nothing more. Many western medium misunderstood that, showing that they don't know much about cryptocurrency either

[Sithara007]

This is going to become a cat and mouse game. Let's see how good China is in monitoring their citizens all over the web. It is easy for a totalitarian state to restrict its people's movements in the real world, but it's quite different when it comes to the online universe.

I don't think the Chinese people are that naïve as to do and say everything the CCP tells them to even in their online lives. China's rulers will definitely be not as successful in the online world in terms of control. The Chinese Bitcoin supporters won't stop buying or HODLing Bitcoin simply because the country's central bank declares it illegal.

You have probably never lived in a totalitarian/authoritarian state and that is the reason why you think that it is possible to go against the government. I China, making a single social media post against the government can land you in jail and you may just vanish from the public without your friends and family members having no knowledge about your whereabouts. The state surveillance will be everywhere, and whatever you do with your laptop or mobile will be monitored. Given this, do you think that a great number of Chinese citizens would still go against the government and trade in cryptocurrency?   

[Darker45]

This is going to become a cat and mouse game. Let's see how good China is in monitoring their citizens all over the web. It is easy for a totalitarian state to restrict its people's movements in the real world, but it's quite different when it comes to the online universe.

I don't think the Chinese people are that naïve as to do and say everything the CCP tells them to even in their online lives. China's rulers will definitely be not as successful in the online world in terms of control. The Chinese Bitcoin supporters won't stop buying or HODLing Bitcoin simply because the country's central bank declares it illegal.

You have probably never lived in a totalitarian/authoritarian state and that is the reason why you think that it is possible to go against the government. I China, making a single social media post against the government can land you in jail and you may just vanish from the public without your friends and family members having no knowledge about your whereabouts. The state surveillance will be everywhere, and whatever you do with your laptop or mobile will be monitored. Given this, do you think that a great number of Chinese citizens would still go against the government and trade in cryptocurrency?   

I have never lived in a totalitarian/authoritarian state although the current leader that we have is being labeled such. But in terms of Chinese politics, I guess it is mortal sin to criticize the government or the CCP, especially publicly. Doing so cannot be equated with merely buying Bitcoin despite a ban in place. I don't think somebody would perish in the thick of the night simply because he/she tried to sneak a P2P Bitcoin purchase.

Moreover, China has been against Bitcoin since 2013. It has already banned it numerous times. Are you not curious why despite all those pronouncements and decisions and orders, Bitcoin is still present in China? Would you somehow consider that by banning Bitcoin many times, China is in effect admitting that it cannot actually ban Bitcoin?

[yhiaali3]

I don't think the Chinese care much about these laws. They continue to work in cryptocurrencies despite the ban laws. They have many means and tools to hide their identity away from the eyes of the tyrannical Chinese government. The Chinese government will not succeed in preventing the Chinese people from using cryptocurrencies. In addition, they have lost important resources. To the state treasury through the taxes that were imposed on cryptocurrencies and also the dollars that were coming from mining and mining equipment. This stupid government will soon discover its mistake.

[michellee]

Indeed. That can create a rebellion from their people because they use strict rules to control all people while people need to realize that they have the freedom to do whatever they want. The government can control them but not all of their lives because every person will have their own will. If the Chinese government still wants to do that, that will be up to them and we should not worry about that because crypto can continue to grow even if China is not in the circle.

[SirArthur]

Bitcoin thrives from the very beginning with bad publicity.
Everyday you get FUD from somewhere, ever since 2009. And at every step BTC has overcame it and became stronger.

So, who cares about China? They want to go back in time and rub sticks to start a fire? Let them go for it...

[Ozero]

I don't think the Chinese care much about these laws. They continue to work in cryptocurrencies despite the ban laws. They have many means and tools to hide their identity away from the eyes of the tyrannical Chinese government. The Chinese government will not succeed in preventing the Chinese people from using cryptocurrencies. In addition, they have lost important resources. To the state treasury through the taxes that were imposed on cryptocurrencies and also the dollars that were coming from mining and mining equipment. This stupid government will soon discover its mistake.

The Chinese will be forced to comply with laws banning cryptocurrency if such laws appear in the future. In any case, no one will openly work with cryptocurrency. And this will be a significant blow to the cryptocurrency in this country. People will use cryptocurrency, but in much smaller amounts. Now statistics show that the percentage of bitcoin production in China is zero. That is, there is no official production, but there are probably still small farms that secretly continue to do this. However, in general, the ban is valid.
We see that such a ban did not affect the decline in the price of bitcoin for a long time, and today the price of bitcoin almost reaches $ 60,000.

[rosenbauer02]

My thoughts is that some chinese would still mine and use cryptocurrency even if it's illegal in their country. As of now, USA (overtake as others may call it) on mining because of the government's decision. Still, it didn't affect much in cryptocurrency. They have to do it illegally though and secretly to avoid being called as a criminal since it is now illegal to use crypto in their country.

[sana54210]

I don't think the Chinese care much about these laws. They continue to work in cryptocurrencies despite the ban laws. They have many means and tools to hide their identity away from the eyes of the tyrannical Chinese government. The Chinese government will not succeed in preventing the Chinese people from using cryptocurrencies. In addition, they have lost important resources. To the state treasury through the taxes that were imposed on cryptocurrencies and also the dollars that were coming from mining and mining equipment. This stupid government will soon discover its mistake.

I do not think that you could be that free in china and do whatever you want to do. Lets be honest with each other china is a dictatorship just like North Korea, sure they have a much better life than people in NK and that seems to be the situation that makes China look better. However, the system that they are ruling their nation is literally exactly same as NK and that is why that there is nobody that could do whatever they want without fear from being murdered.

If you go against what CCP wants then you will not be just jailed, hell even the journalists get so much jailed there that even a slight discomfort in a paper means they are going to get jailed and you are telling me that people could use crypto without a problem?

[DrBeer]

The transition to the American dollar, as a temporary measure, is the most logical move for this situation. Simple, understandable, and really predictable for ordinary people, and this is very important. And the most important thing is stability, as long as the dollar is the blood of the world economy, nothing bad is guaranteed to happen to it, and everywhere it will be welcome as a means of payment

[Quidat]

My thoughts is that some chinese would still mine and use cryptocurrency even if it's illegal in their country. As of now, USA (overtake as others may call it) on mining because of the government's decision. Still, it didn't affect much in cryptocurrency. They have to do it illegally though and secretly to avoid being called as a criminal since it is now illegal to use crypto in their country.

We dont know on whats happening behind the curtains because they might be having making these decisions but turns out that they are accumulating coins or crypto secretly and just trying to
show off into the world that they are totally against with crypto but honestly they had been doing something like this.In overall we could really say that the market doesnt really
been affected much with these kind of news or sentiments but there are times that it could be badly be affected but we know that this market could recover
on its own and as long theres some demand then we cant really be that easily to fall off.

[dothebeats]

Bitcoin thrives from the very beginning with bad publicity.
Everyday you get FUD from somewhere, ever since 2009. And at every step BTC has overcame it and became stronger.

This is also what I noticed from bitcoin. It has always been the center of negative publicity, but it was never a huge problem as people still buy bitcoin anyway despite governments and other huge entities warning them not to go near the said cryptocurrency.

China has been taunting such bans for so long now that it no longer is a threat if they decide to ban bitcoin for real this time. The world has since moved on from news coming in from China, that whatever happens in that region no longer concerns what's happening in the bitcoin ecosystem.

[LUCKMCFLY]

Before all this I have a theory, and it may sound a bit crazy, but every time China prohibits something, the immediate effect is that Bitcoin and cryptocurrencies go up, because everyone will look for a way to enter and win, that's like telling people that money is a bad thing, do not look too much ... When people are concerned about money and are forbidden the ways to obtain it, they become irreverent and more so if it is by mandate of a government or entity that does not help its population to improve your private economy.

This is something simple that everyone is looking for, you cannot say no to people to make you more slaves, the market would react positively, at least I see it that way.I do not know if anyone agrees with my quick analysis, which may be merely speculative but cannot be ruled out.