Although the first Bitcoin was mined ca. 13 years ago, global economies are still barely coping with regulating crypto-assets. In line with the saying “so many countries, so many customs”, the governments of the world’s superpowers have at times proposed various, often completely extreme ideas to regulate this issue, including the outlawing of cryptocurrencies.
One of the most restrictive approaches to regulating cryptocurrencies is that of the People’s Republic of China. The People’s Bank of China, in a communiqué published on 24 October 2021, announced that any cryptocurrency transactions were illegal within the country and would be strictly countered by Chinese authorities, with cryptocurrency mining being added to a draft list of banned industries. However, such a state of affairs is not surprising.
In the months leading up to the ban, the Chinese government’s hostile attitude towards modern assets has been evident. In June of last year, two Chinese provinces, Xinjiang and Quinghai, were obliged to stop cryptocurrency trading and mining in their territories. Such regulations in China’s strategic provinces clearly signalled the imminent arrival of a total ban. Even though China often changes its approach, it is difficult to expect a thawing of its policy towards cryptocurrencies. This is not surprising, as Bitcoin or Ethereum, already used by 140 million people, are natural competitors to the e-juan.
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