Who banned crypto in China?

In September 2021, the People's Bank of China (PBOC) imposed a significant ban on all cryptocurrency transactions within the country. This move was prompted by concerns over the potential negative impact of cryptocurrencies on China's financial stability.

The PBOC highlighted the role that cryptocurrencies have played in facilitating various forms of financial crimes, ranging from money laundering to fraud. These activities undermine the integrity of the financial system and threaten public safety.

Furthermore, the highly speculative nature of cryptocurrencies poses a growing risk to China's financial stability. The volatile prices of these digital assets can lead to significant losses for investors and destabilize the overall market.

As a result of the ban, Chinese citizens and businesses are prohibited from engaging in any form of cryptocurrency trading or investment activities. This includes buying, selling, and holding cryptocurrencies, as well as participating in related financial services.

The PBOC's decision has had far-reaching consequences for the global cryptocurrency market. China was once a major hub for cryptocurrency trading and mining, and the ban has led to a significant decline in activity within the country.