From 2013 until today, China has already announced the banning of Bitcoin and other cryptocurrencies in its territory on at least 5 occasions. The most recent case occurred last week when the Asian country said it would act to crack down on mining and Bitcoin trade.
Although the announcement helped bring down the price of Bitcoin with the panic in place, those who have been in the market for the longest time know that these episodes are recurring.
As Pantera Capital CEO Dan Morehead noted in a tweet published on Thursday (27), the restrictions are nothing new.
Prohibition in 2013
The first case occurred in December 2013 and was reported by Bloomberg. The headline said: “China forbids financial companies from trading Bitcoin.”
According to the article, the prohibitive initiative was taken by the Chinese central bank itself. The monetary authority banned Bitcoin trades after the price of crypto skyrocketed and generated great interest in the country. Then, the BTC price plummeted 20%.
Successive bans in 2017
Another case occurred about 4 years later, in September 2017. On the occasion, something similar to the previous episode happened.
A Business Insider story informed about a $ 500 drop in Bitcoin price after reports that China would ban cryptocurrency exchanges from operating in the country.
In the same month, China also announced a ban on initial coin offers (ICOs).
According reported the TechCrunch portal, the ban was announced by a committee led by the Chinese central bank.
In 2017, ICOs experienced their peak, with the launch of numerous projects. In view of this, China tried to try to ban ICOs, as the phenomenon “seriously disturbed the economic and financial order”.
In this episode, the Asian country is a little right about financial security. In fact, many projects proved to be fraudulent, harming several investors.
Also in 2017, more precisely in November, it was Forbes’ turn report about the “definitive death” of cryptocurrency exchanges in the country.
According to the report, the ban announced in September had fulfilled its mission. That’s because, on November 2, the last exchange ended its operations in China. The country has also made it illegal for the Chinese to trade digital currencies on national territory.
The warning had little impact on trading platforms, which only migrated their headquarters. Regarding the ban on trading the Chinese, they also continued to trade cryptocurrencies normally.
Prohibition of 2021
Finally, there is the most recent case in May 2021. After banning financial institutions from offering cryptocurrency services to their customers, the Asian country has again banned Bitcoin mining and trading.
When sharing the ban cases, Morehead tweeted: “Haven’t we seen this movie before?”
Now, it remains to be seen whether China will, in fact, act to prevent cryptocurrency trade in the country. At other times, companies continued to provide services, even if in a restricted way.
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