This archive report was first published on 27 September 2021.
September 27, 2021, marked a significant shift in China's stance on cryptocurrencies, as its central bank issued a notice banning all financial transactions involving these digital assets.
The ban, which includes trading, selling tokens, and transactions involving virtual currency derivatives, aims to curb the growing speculation and illegal activities surrounding cryptocurrencies like bitcoin.
China's central bank cited the widespread disruption of economic and financial order, as well as the rise of money laundering, illegal fundraising, fraud, pyramid schemes, and other illicit activities as reasons for the ban.
As one of the world's largest crypto-currency markets, China's move is significant, particularly given its previous dominance in the global bitcoin energy use market, which peaked at 75% in September 2019 before falling to 46% by April 2021.
India, another major player in the global crypto market, has also taken steps to regulate cryptocurrencies, with plans to pass a law that would criminalize possession, issuance, mining, trading, and transferring crypto-assets.
