China warns of rising crypto risks, calls for tighter crackdown

[Z-tight]

Maybe they can sell their Bitcoin and allow those that want to buy it to do that without trying to fud the market. I woke up this morning to notice that the price of Bitcoin has fallen which seems like China is trying to make the price of Bitcoin to depreciate again.

The small dip in the price of BTC had nothing to do with this news from China. This news wasn't even really about BTC, but stablecoins and illegal use of virtual currencies in China. Take note that China no longer holds that much influence on the market, so news that come out of the communist state carries little weight and people hardly make decisions based on it.

and not by trying to make everything looks scary to people that are following the adoption of Bitcoin, always ready to buy and hold for their future benefits.

Chinese laws apply to people living within the country. And there are a few bans on crypto in China, which means some of its use is 'illegal', so they are not wrong in that. However, people outside the state who react or sell their coins because of stories from China are weak hands and they don't really believe in BTC.

[BALIK]

I remember back in 2013-2015, China banned and unbanned bitcoin so many times that I couldn't count. There was a meme with an animation about Bitcoins price being too high and China saying "hello Internet, we ban bitcoin" and the price went down.

I think the last huge impact that China crackdown on Bitcoin was when they targetted miners and there was a massive hashrate decrease, the largest decrease I think ever and after that China really wasn't that effective on moving the markets, right now its mostly the United States and Donald Trump.

As far as I remember they never lifted the ban from 2013 to 2015. They started the first ban in 2013 and then tightened it further in 2014. In 2015, they unexpectedly relaxed some of the previous bans but did not remove them completely, and this lasted until 2017 before they issued a series of draconian bans on mining activities.
But you're right, and since the 2017 ban, China has had almost no impact on the market anymore.

Its funny because I think I read an article a few days back where China might "go easy" on bitcoin and now I read this article which is the complete opposite.

In June of this year, they expanded the ban and moved to a complete ban, so it’s unlikely they will loosen or lift it. I think the news you read before is just unverified news.


https://coinpedia.org/cryptocurrency-regulation/crypto-regulations-in-china-in-2024/

[Kelward]

First if all, do you know what I like about this? Bitcoin price was not affected by the news. If it was in the past, bitcoin price would have falling significantly because of news like this.

That's because many are aware China don't really have a direct impact in Bitcoin price
Unlike the US they have been Anti Bitcoin. It's like Peter schiff saying Bitcoin is falling today
Many wouldn't pay him any heed, but Saylor? That would be different entirely.

What you said is true about China, and Bitcoin, already China, is known not to be a crypto friendly country and any negative thing that they say about Bitcoin wouldn't affect Bitcoin market. If a country like the US were to make negative comment about Bitcoin it'll surely impact it's price negatively so I won't worry about dip if China, were to say Bitcoin is scam. Although I can only speak for Bitcoin when it comes to cryptocurrency, the rest could be scrutinized before holding them. Investors have become wiser they won't take drastic decisions about Bitcoin when criticism is coming from a country like China, or haters like Peter Schiff.

[red4slash]

China has done something like this several times and they will try to change little by little later as if they become neutral and support bitcoin again then drop with fud again and something like this they always repeat.

It's a rinse and repeat strategy for them, I think that they want to buy more and that's why sending news and laws like this is a way to do it.

The goal is only for personal gain and that cannot be denied. We don't know if China is currently banning bitcoin but of course there can be games in it especially because bitcoin is anonymous where we don't know who is buying or selling and this is clearly a situation that can be exploited.

Rumors some time ago about China selling their bitcoin could be true even though things like this can't really be proven especially since China is still the same where they close access from outside media to their country and we can't find out more about how their lives are there.
So in this case their efforts are still the same and when we know what they are doing it is actually too much if we still feel excessive fear of things like this.

[FortuneFollower]

^ I don't see or fear in things like this, because either way - BTC is going to be alright with or without politics and bans tied to it, it's just that we may experience big spikes up and down, but most of all, BTC would still stand tall, and that is what truly matters.

[Hispo]

You have to remember China is an authocratic country which is rule by a single party which wants to keep all the population of the country under their control and surveillance, so it is obvious for anyone who knows a little bit of geopolitics that China is enemy of Bitcoin and descentralization. Authocracy and descentralization and not compatible, so the government of China wants to discourage Chinese people from buying and holding Bitcoin in the long term.

I would be very glad if more countries started to invest and adopt Bitcoin, leaving China and their CPP behind with their centralized and authoritarian system of payments.

[CryptoBuds]

China has done something like this several times and they will try to change little by little later as if they become neutral and support bitcoin again then drop with fud again and something like this they always repeat.

It's a rinse and repeat strategy for them, I think that they want to buy more and that's why sending news and laws like this is a way to do it.

As of now, only El Salvador is the only government using its budget to invest in bitcoin. They are the only country that believes in bitcoin, no other government does, including the one you guys are idolizing and praising, the United States. Most of them just use the bitcoins confiscated from criminals to add to the national reserves. It's not even an official national reserve, it's just an executive order.

Honestly, I don't think a country that has never been friendly to bitcoin will have the need or desire to buy it. Frankly speaking, China doesn't need it and it doesn't benefit them. We should stop being under the illusion that countries value bitcoin so much that they quietly buy it, as well as spreading FUD, so they buy it cheaply.

[GreatArkansas]

(....)
I am very happy that some countries are not following China, if more countries have bitcoin in reserves, I believe many other countries will follow and leave China behind. Although China is not having plans to sell their bitcoin holding yet which look like a reserve on it own for now.

I really don't think this is really an issue here, like any country can do anything they want without following any other countries like the U.S. or China.

These 2 big countries are just models to others becaus,e as we all know, these countries are full of innovation and especially in the past when there were some big news  about Bitcoin and these 2 countries, price reaction on Bitcoin is really huge.

[ThemePen]

You are right because most important thing is that price of Bitcoin did not fall much after news, which shows that market has changed and Bitcoin is no longer easily controlled by rules of Chinese central bank. This change of power is clear because despite warnings of central bank of China to make rules stricter, market did not fall, which shows that financial center of crypto has moved to other nations. Your intuition that China is especially worried with stablecoins is also confirmed by news, which is likely due to fact that they tend to be tied to US Dollar and threaten control of money by China, and I also agree that as more nations begin to hold Bitcoin as reserve, this worldwide adoption will further reduce ability of China to impact market. But here I will add something more that not only China, Bitcoin should not be affected by any government.

[Z-tight]

You are right because most important thing is that price of Bitcoin did not fall much after news, which shows that market has changed and Bitcoin is no longer easily controlled by rules of Chinese central bank.

BTC was never controlled by the Chinese central bank or any other central authority for that matter. The price could be influenced, but that is about it. And over time even that influence tends to fade, so yeah.

I would be very glad if more countries started to invest and adopt Bitcoin, leaving China and their CPP behind with their centralized and authoritarian system of payments.

So many bitcoiners will disagree with you. BTC adoption by countries has its advantages, in terms of price growth and all. However, it comes with its own worries. Centralized entities owning a large amount of BTC would leave us open to price manipulations and other whatnots. But in the end, everyone is free to buy BTC.

[Mate2237]

This should not sound strange to anyone who has been around in the crypto space for a while because China has never been a friend with crypto currency or even Bitcoin. So anything that China can do to regulate the use of crypto currency by their citizens China is ready to do it. I think that Chinese government stands on crypto currency may not be too far with America position on crypto currency.America and China has not been the best of friends in a while and with Americans currently leading in crypto currency the Chinese government is trending caution when it comes to crypto.



But this is not a too good one for the citizens because with the type of population that China holds coupled with the economy activities that China is known for regulating crypto currency is not in the best interest of the country. Because China which is now the technology base of the world crypto currency can emersly benefit the government of China.

[Rengga Jati]

What you said is true about China, and Bitcoin, already China, is known not to be a crypto friendly country and any negative thing that they say about Bitcoin wouldn't affect Bitcoin market. If a country like the US were to make negative comment about Bitcoin it'll surely impact it's price negatively so I won't worry about dip if China, were to say Bitcoin is scam. Although I can only speak for Bitcoin when it comes to cryptocurrency, the rest could be scrutinized before holding them. Investors have become wiser they won't take drastic decisions about Bitcoin when criticism is coming from a country like China, or haters like Peter Schiff.

They may often be considered unfriendly to cryptocurrency. However, the fact that China is one of the countries with the largest Bitcoin holdings after the United States is undeniable; this is a fact that reflects two different things repeatedly. And here, we even see that the difference compared to the US is not that much.

So, if it's always associated with China, let it be. After all, they do things like that, and it's certainly impossible to just publish news; there must be an ulterior motive.

source here:
https://bitbo.io/treasuries/countries/

[cr1776]

I don't think even ChatGPT can count high enough to enumerate the number of times that China has banned, cracked down on, or implemented tighter regulations on bitcoin.   It is more of the same - the authoritarians in China don't like freedom from fiat.

[Alphakilo]

I don't think even ChatGPT can count high enough to enumerate the number of times that China has banned, cracked down on, or implemented tighter regulations on bitcoin.   It is more of the same - the authoritarians in China don't like freedom from fiat.

China has always been anti crypto currencies for as long as I can remember, because they are the core principal of BRICS currency which of course use the Yen, and from my perspective, I think they seek financial dominance too just as the U.S has with the dollar always being on top as a choice currency across the globe.
They may turn around later to adopt and even own a strategic Bitcoin reserve because the U.S has done so and other world power countries will soon be doing so in their numbers, but the ultimate reason for all this their noise of cryptocurrency risk is all because of control over their citizens and their identity and their finances.

[Furball808]

First if all, do you know what I like about this? Bitcoin price was not affected by the news. If it was in the past, bitcoin price would have falling significantly because of news like this.

That's because many are aware China don't really have a direct impact in Bitcoin price
Unlike the US they have been Anti Bitcoin. It's like Peter schiff saying Bitcoin is falling today
Many wouldn't pay him any heed, but Saylor? That would be different entirely.


Checked the link and it's obvious they are driving towards the direction of stricter KYC
Right to privacy is becoming a myth.

China has been well known to not like bitcoin so it’s expected. But imagine if China suddenly announces the lifting of their crypto ban… For sure the prices would rise because China is one of the biggest market of crypto so it’ll mean a lot if they finally accept this instead of being against it.

[coupable]

First if all, do you know what I like about this? Bitcoin price was not affected by the news. If it was in the past, bitcoin price would have falling significantly because of news like this.

China no longer has any influence in this market after laws banning all cryptocurrency-related activities and services a long time ago. The price would fall significantly if the USA does the same warnings. But what i can see is that China woke up and realize something important is happening, because the ignore the decentralized nature of the blockchain and realize that it can lose power if they continue like this. Instead of reviewing policies, they decided to more scare people about cryptocurrencies and delay their spread for as long as possible.

[Ronsbit]

I don't think even ChatGPT can count high enough to enumerate the number of times that China has banned, cracked down on, or implemented tighter regulations on bitcoin.   It is more of the same - the authoritarians in China don't like freedom from fiat.

They always want to control the system and their citizens, forcing them to do their bidding, as they are afraid to give them freedom. The authoritarians have it all in China, and the masses have no say in anything; they are just bent on being submissive to the laws without questioning the genuineness of their actions. The elites and government only want themselves to control digital assets but do not want their citizens to do the same. Why are they afraid?

[TastyChillySauce00]

First if all, do you know what I like about this? Bitcoin price was not affected by the news. If it was in the past, bitcoin price would have falling significantly because of news like this.

Goes to show that people just consider this kind of news as china doing china thing, cracking down on something like bitcoin is normal for china since they want their currency to dominate.

The good thing is the other part of the world can just continue to developed blockchain and bitcoin can thrive and grow even without china.
With more crackdown attempts, their relevance dwindled.

[retreat]

China has long been hostile to Bitcoin, because they think it is a threat to their monetary sovereignty and capital control system, and because of this they carried out a massive crackdown on Bitcoin mining and trading several years ago. However, despite this, there is still a lot of Bitcoin mining, trading and holders in China because the crypto underground market is very strong in China with people finding ways to circumvent restrictions using VPNs, P2P platforms, and various other things.

But even so, if now the Chinese government returns to crackdown on crypto mining and trading with more aggressive enforcement, the impact may not be as massive as the first crackdown because the ecosystem has moved underground and people are smarter to be able to anticipate this and adapt to China hostility, so the effect will be very minimal.

[treesintheforestooh]

Four of the five largest Bitcoin mining pools in the world are in China.

My guess is this is just China doing what they do every year or two. Largely bullshitting. 

For what it's worth, there's some news related to those aforementioned mining pools that may be of some interest to people here in another thread (titled "Bitcoin's Security Budget Issue - Educational Website by Blockchair").