DeutschA rumor is shocking the crypto community – once again. China, of all countries, which is already considered a hardliner when it comes to cryptocurrencies, is said to have unleashed a new wave of bans. Since Thursday evening (July 28), reports of fresh restrictions against mining, trading, and crypto-based services have been circulating on social networks. But as so often: many headlines, little substance.
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Because so far there is no confirmation from any official source. Neither state authorities nor major media from China are reporting concrete new measures. Some Chinese publications even directly contradict: “No new ban. Period.” Nevertheless, the uncertainty is back – and it’s not coming out of nowhere. After all, China has proven often enough in the past that it doesn’t do things by halves when it comes to Bitcoin & Co.
China: New Crypto Bans are Circulating
The journey of the Chinese regulators through the crypto world already began in 2013. Back then, they forbade banks from supporting Bitcoin transactions. In 2017, the final end for crypto exchanges followed. And in 2021, finally, the great clearing: a complete ban on all crypto activities – from mining to trading. This not only led to the flight of numerous miners abroad, but also to the exodus of industry giants like Binance.
Despite all the measures, China is still one of the world’s largest locations for Bitcoin mining today. The hash rate, i.e., the computing power that is fed into the network, clearly shows: The scene could never be completely shut down. Decentralized finance platforms (DeFi) are also being used extensively – under the radar. If you want to play it safe, you can move to Hong Kong. The special administrative region serves many Chinese investors as an unofficial loophole for legal transactions and cold wallet transfers.
What’s the Truth about the New Ban Rumors Surrounding Bitcoin and Co.?
An interesting point that is often overlooked in the debate: In China, the possession of cryptocurrencies is not illegal. Anyone who holds Bitcoin or Ethereum is not committing a crime – as long as they do not publicly trade or use them. This gray area allows many investors to continue holding their coins, even if the public market remains closed.
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As of now, it looks more like a storm in a digital teacup. The alleged “new” bans largely coincide with the regulations that have already been in place since 2021 anyway. It is more likely that an old decree has been reheated or a local individual case has been blown up – a well-known dynamic in social networks when it comes to the crypto giant China. Nevertheless, an uneasy feeling remains. Because when a country with 1.4 billion inhabitants and a strict control apparatus influences the global crypto mood even with rumors, it shows once again: The markets react not only to numbers – but to nerves. (mck)
