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A joint statement from China's government agencies describes its efforts as an attempt to stop risks stemming from the "blind and disorderly development" of cryptocurrency. According to the People's Bank of China, virtual currency business activities are now equivalent to illegal financial activities. The explanation for this, according to the bank, is that cryptocurrency "seriously endangers the safety of people's assets." More specific explanations were not provided and are unlikely to be in the future.
In effect, these new policies in China ban all cryptocurrency use within the country. That means that cryptocurrency can no longer be traded or exchanged for physical currencies. This includes Chinese users using exchanges outside of China or storing cryptocurrency internationally. As such, international exchanges will need to block all transactions or account activities made within China. Domestic cryptocurrency exchanges have already been banned for some time, but the new rules are much more expansive.
To be clear, cryptocurrency mining, the process involving using computer graphic processors to "farm" coins, had already been banned in China. That happened earlier this year. The new rules revolve around a crackdown on remaining mining and the exchange of cryptocurrency digitally. While a portion of miners had been leaving China since the ban, a significant amount of them remained within the country. The new regulations may force miners to move much more swiftly.
source
In effect, these new policies in China ban all cryptocurrency use within the country. That means that cryptocurrency can no longer be traded or exchanged for physical currencies. This includes Chinese users using exchanges outside of China or storing cryptocurrency internationally. As such, international exchanges will need to block all transactions or account activities made within China. Domestic cryptocurrency exchanges have already been banned for some time, but the new rules are much more expansive.
To be clear, cryptocurrency mining, the process involving using computer graphic processors to "farm" coins, had already been banned in China. That happened earlier this year. The new rules revolve around a crackdown on remaining mining and the exchange of cryptocurrency digitally. While a portion of miners had been leaving China since the ban, a significant amount of them remained within the country. The new regulations may force miners to move much more swiftly.
source
