China, which last year banned all cryptocurrencies, including bitcoin (BTC), was one of the factors that caused the market to collapse. After the announcement that China had also banned crypto-mining, the resulting FUD market began to collapse, causing bitcoin to fall from the $60,000 range to around $28,000. Cryptocurrency mining companies migrated to other countries in the region, such as Kazakhstan, following the ban decision. China’s mining ban has significantly reduced bitcoin’s hashing rate.
China became hostile to Bitcoin in 2021
Claiming that the cryptocurrency industry facilitates money laundering, China became hostile to Bitcoin in 2021, even though it has been at the center of the industry for years. In an attempt to block cryptocurrency payments within the country, China has once again stepped up the degree of bans. Declaring that cryptocurrency trading would be considered “illegal fundraising,” China’s Supreme Court announced tighter controls. This precedent-setting decision by the court created a legal framework that shows what charges people trading cryptocurrency in China will face.
Experts say this is the first time in China’s history that such a harsh decision has been made against cryptocurrencies. From now on, it has been stated that people caught trading cryptocurrencies in China will face harsh penalties. In the announcement: It was reported that opening futures transactions, launching IDO/ICO, actively using cryptocurrency exchanges and trading on the over-the-counter (OTC) market are criminal offenses. According to the information received, criminal charges will be filed against those who carry out these activities, requiring a 10-year prison sentence. From the information provided by the court, it appears that such practice will begin on March 1.
The fact that people somehow involved in crypto transactions in China could face 10 years in prison has also been on the country’s agenda. Many Chinese investors agree that this is a pretty serious punishment. With the launch of this app, Chinese crypto investors are taking a big risk when trading.
The United States, which sees China as an economic rival, has approached the final stage of preparations to regulate cryptocurrencies. It is alleged that President Joe Biden was against a ban decision similar to China’s from the beginning. The order to regulate cryptocurrency markets will be made public in the coming weeks. Expressing his views on the issue in an earlier statement, President Putin said: “We are not in favor of a ban, we will negotiate. Cryptocurrency mining is important for Russia.”.