Is crypto without China viable?

Despite visible gains for some investors, it may be time to evaluate whether crypto without China is viable. China, the erstwhile capital of crypto, banned mining last June after banning crypto exchanges five years ago. There are two good reasons why China has banned mining in its borders.

Why does China dislike crypto?

The bubble reason for China’s dislike of crypto is concern about capital flight. It is significant that China closed down the exchanges and moved to block Chinese access to overseas exchanges and wallets in the autumn of 2017. This was not long after China suffered significant capital flight and saw its foreign exchange reserves decline.

Is cryptocurrency a threat to China's financial system?

In late September 2021, the People’s Bank of China (PBOC) banned all cryptocurrency transactions. The PBOC cited the role of cryptocurrencies in facilitating financial crime as well as posing a growing risk to China’s financial system owing to their highly speculative nature.

Does China support crypto-currency mining?

No. China dislikes the energy consumption and greenhouse gases associated with crypto-currency mining. Regulators also think, with good reason, that crypto currency is used for money laundering, capital flight, and illegal transactions, so why support it?