China May Ban Bitcoin Forever

The ongoing ban has caused Bitcoin miners to worry that the Chinese government may permanently ban cryptocurrency mining and exchange.

Since mid-May, the Chinese government has continuously introduced a ban on Bitcoin mining and investment. After the National Internet Finance Association, the Bankers Association, and the Payments Association jointly issued a statement on the ban on cryptocurrency services, the Inner Mongolia Development and Reform Commission also issued a regulation, banning mining pools. Bitcoin mining works.

“It is possible that China will issue a permanent ban on Bitcoin and cryptocurrencies in general,” said Chen Weigang, general manager of the Financial Institutions Supervision Department of the China Banking and Insurance Regulatory Commission. told China News Weekly.

In fact, China has banned all crypto-related services since 2013. The ban caused BTCC – the first Chinese cryptocurrency exchange located in Shanghai – to close. Four years later, the Central Bank continued to reiterate this ban and blocked more than 110 websites related to cryptocurrency trading. Exchanges like Binance, Huobi were tightened and had to move their operations abroad. Recently, China’s largest social network – Weibo – also officially blocked keywords related to Bitcoin and cryptocurrencies. This move shows the serious effort of the Beijing government to completely ban Bitcoin and cryptocurrencies in general.

“Bitcoin trading is now subject to clear regulations. In the past, transactions were usually done in the name of individual purchases. Now such payments need sufficient proof like a sales contract to ensure it is a real business transaction and not a ‘money laundering’ activity. If the requirements are not met, the transaction is considered illegal. The supervision of transactions will be more and more strict for investors,” said Chen Weigang.

The region of Inner Mongolia, which is considered the “Bitcoin capital” has issued a series of rules to completely eliminate cryptocurrency mining. Many major Bitcoin mining companies such as HashCow and BTC.TOP have announced to temporarily close their factories to move their mining operations abroad.

“In fact, the authorities have always banned Bitcoin mining, but this time things are more tense. Many Bitcoin and Ethereum mining pools were checked and forced to commit to leaving. This confuses many farmers because outside of China, many people don’t know where to go,” a cryptocurrency miner told China News Weekly.

Some small Bitcoin miners consider it difficult to completely ban cryptocurrency mining in China. This ban is mainly aimed at large businesses. However, Chen Weigang noted, a ban on individuals and small mining pools may also be enacted in the future when the government has taken control of large companies.

According to analysts, the two biggest risks with Bitcoin right now are mining that consumes too much electricity, emits a large amount of carbon, and concerns about the legality and ability of the government to control the market. every countries. In China and many European countries, the regulator still believes that Bitcoin will be like the “tulip bubble” in the Netherlands in the 17th century – the first recorded asset speculative bubble crisis in the world. gender. “Bitcoin is not even an investment asset, it acts like a tool for speculation,” emphasized Chen Weigang.

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