China’s Bitcoin Mining Ban is a Short-Term Blow, But Easily Recoverable
China’s Anti-Crypto Stance
In another hostile move by the Chinese authorities, the proposal to ban cryptocurrency mining will spread more fear, uncertainty, and doubt. But the Chinese government has long been cautious over cryptocurrencies for reasons we can only speculate. Back in September 2017, the Chinese authorities implemented a raft of stringent regulations that severely restricted cryptocurrency activities. This included a ban on Initial Coin Offerings and fiat to Bitcoin exchanges.
Many Chinese investors sought to overcome these restrictions by using peer-to-peer networks and VPN services to trade on overseas exchanges. However, the month that followed saw a further crackdown on “exchange-like services,” as well as the inclusion of foreign cryptocurrency exchanges and ICO websites to the Great Firewall. What remained was discussion of cryptocurrencies via media outlets. However, even this was subsequently outlawed.
