Another Day, Another Chinese Crypto Ban

In fact, accepting cryptocurrencies as payment is illegal in the country.

China is Forever Banning Crypto

Personally, I don’t find this particularly surprising. After all, China has announced that crypto payments were illegal a long time ago, and its financial institutions were forbidden from offering crypto-related services to businesses for years. However, it seems that the country found that its previous ban may have left a few holes for more flexible businesses to slip through and find a way to continue operating.

That’s the trouble with laws — they can be manipulated a bit to find a way through if you are particularly determined and if the law doesn’t cover all the bases perfectly, which seems to have been the case. But, the country became aware of the issue, and it plugged all the potential holes, thus cementing the future of any crypto company that decides to stay in the country.

Why China is Concerned About Crypto

There have been many theories as to why the country made this move, and specifically — why now? Some believe that the launch of its CBDC is approaching, and the country aims to eliminate any potential competition from the space, essentially taking away any kind of choice and forcing its citizens to go for digital yuan once it sees launch. Others think that it may have tried to manipulate the market. And, of course, there is the official explanation that the law is the law.

At any rate, I think that this might be the end of crypto in China for the time being. Perhaps the country might revoke the law at some point in the future, although I wouldn’t count on it unless it changes its ways entirely, which is very unlikely to happen.

Do you think that China was right to make this move?

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