Bitcoin has halted tons of phenomenal records in a nominal range of time. The return of investment processed by the bitcoin complex in such a short period is just incredible. Bitcoin is the favorite topic of millennials as well as the renowned cryptocurrency and generalized investors.
Several multinational companies have invested a gigantic buck in the cryptocurrency industry. However, the co-founder of Twitter has correspondingly stated that bitcoin is potential enough to become the tone world currency, but it cannot be possible as several countries have banned bitcoin.
Recently, the utmost active cryptocurrency in terms of bitcoin has banned bitcoin, but it did not ban bitcoin and another cryptocurrency; yes, you read it right. Undoubtedly banned some crucial activities subjected to bitcoin and other cryptocurrency but bitcoin is not utterly banned in china.
Below mentioned is every possible reason and fact that why bitcoin is not completely banned in China; let’s have a look.
China Crackdown Cryptocurrency!
It is not the very first time that China has announced a cryptocurrency ban or crackdown, as in 2014 and 2018, china did similar activities. Suppose you want to get profitable results in the bitcoin journey, checkout for Bitcoin Era for more details. However, the impacts of the cryptocurrency ban in 2018 were even worse in contrast to the impacts of the crackdown that occurred in the year 2020.
The unrealized losses of bitcoin carnage in the recent cryptocurrency crash were enormous but still less in terms of percentage compared to the prior cryptocurrency crash.
China announced the cryptocurrency crackdown on the 18th of May. The prime reason defined the higher authorities of china for the cryptocurrency crackdown was financial stability.
The volatility of bitcoin is exceeding as the value of bitcoin moves alongside several factors such as supply and demand, bad media reports, etc. The volatile nature of bitcoin of considered as the only risk and drawback of bitcoin.
The population of China has invested in a gigantic buck in bitcoin, and another cryptocurrency which concerned the financial authorities of china and the jointed committee announced a cryptocurrency crackdown on bitcoin and another privately mined cryptocurrency.
The crackdown included banning the financial institution rendering services to the newly flanged users in terms of cryptocurrency. All the more, it halted banks and other e-banking forums to accept bitcoin as a payment method.
Ban of cryptocurrency in china correspondingly banned bitcoin mining which just shocked every possible individual and participant of the bitcoin mining industry as the entire bitcoin mining global chain is equipped with 65% contribution of china.
China Did Not Ban Bitcoin Trading and Investment!
The cryptocurrency crackdown in china created an exceeding extent of chaos in the entire cryptocurrency industry. However did not actually ban the trading of bitcoin and another cryptocurrency; the ban just warned cryptocurrency investors and traders to extract their funding for the sake of financial stability, but there is no such rule till now which demonstrates banning bitcoin and another cryptocurrency trading.
Undeniably several provinces such as Beijing are inclining the crackdown to utterly weed out cryptocurrency in china.
As per the statement of the national bank of china, the financial authorities have asked the trustable exchange and domestic banks to implement a robust crackdown on the cryptocurrency, especially bitcoin, in order to utterly eradicating the utilization of bitcoin and another cryptocurrency from the country.
In a nutshell, higher authorities of china are tightening up the crypto crackdown at that the instance but still trading, and investment of cryptocurrency is not banned in China, but the national bank of china, had a meeting with the few other prominent banks of china alongside few trustable exchange to enhance the ban.
The prime reason behind the fact is that subsequent to the halting of a cryptocurrency exchange in China, the crypto investors shifted to a global exchange platform just hassle-free. All the more, few china based trustable exchange platforms are correspondingly offering services in terms of cryptocurrency even after the ban.
The fact might amaze you that in the recent meeting, national banks are urged to cut the payment channels of individuals indulged in bitcoin trading and investment progression. As per the recent meeting, every marketer offering cryptocurrency services will be blacklisted.
These are some of the aspects related to the bitcoin ban in China.