The hostile relationship between China and the crypto started since 2013, when the country set the first step of restrictions.
The crypto transactions
China’s hostile stance regarding crypto dates started back to December 5, 2013, when the People’s Bank of China (PBoC), the Ministry of Industry and Information and other financial watchdogs jointly issued a notice prohibiting banks from handling transactions related to Bitcoin.
The ban was started because the digital asset was not backed by any central authority.
Prohibiting the ICOs
On September 4, 2021, the PBoC stated that Initial Coin Offerings (ICOs) were banned. Prior to the ban, entrepreneurs and developers could raise funds for their projects by issuing and selling tokens.
The Bitcoin mining
In April 2019, China’s National Development and Reform Commission (NDRC) labeled Bitcoin mining an “undesirable” industry in its preliminary list of sectors that should be encouraged, restricted or phased out by local governments.
More than half of the world’s Bitcoin mining hash rate was addressed in China because operators had access to cheap electricity.
The complete ban
The country’s regulators chose to ban crypto trading altogether in September. Unlike the previous crypto transaction crackdowns, the country’s central bank, in conjunction with nine other state bodies, including the police and the supreme court, removed any shred of doubt regarding the country’s stance on cryptocurrency and left no room for misinterpretation.