China has officially banned cryptocurrency trading, mining, and related services

The crypto industry has never been short on rumors suggesting that China is preparing to unban Bitcoin since the nation’s 2021 crackdown on crypto trading and mining.

A blanket ban on crypto ownership would be highly unusual, even for China. Despite restrictions on trading and mining, Chinese courts have repeatedly ruled that cryptocurrencies are legally recognized as property. In November, a Shanghai judge affirmed that crypto assets are not explicitly prohibited and described Bitcoin as a commodity.

Bans on Transactions and Services: China’s most powerful regulators issued a blanket ban on all cryptocurrency transactions and mining in 2021. This included prohibiting financial institutions and payment service providers from engaging in crypto-related business, and warning investors against speculative trading.

Concerns Cited: The People’s Bank of China cited concerns about the potential for cryptocurrencies to facilitate financial crime and pose risks to the country’s financial system due to their speculative nature.

Other contributing factors include a desire to combat capital flight and to assert control over the financial system, according to CBS News.

This crackdown had a significant impact on the cryptocurrency market, with Bitcoin and other major coins experiencing price declines and increased volatility.

Continued Interest (Despite the Ban): Despite the ban, there’s evidence that some Chinese investors continue to find ways to engage with cryptocurrencies, including utilizing overseas platforms and peer-to-peer trading. Some local governments have even been found to be selling seized digital coins to replenish public coffers