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· Posted on
October 20, 2021

China makes crypto transactions illegal

In a big power move from the Chinese Government, all crypto transactions will be banned.

What's the key learning?

  • China's central bank has said all cryptocurrencies are illegal, meaning all crypto-related transactions (including mining) are now banned
  • The Chinese Government is citing environmental concerns...but they've also got plans to release their own digital currency
  • China has a history of censoring all things digital in order to control information in the news and online
  • Now, we're seeing the same thing, but with cryptocurrency.

Background: China's crackdown on crypto has been years in the making. In fact, it actually started back in 2013. That year, China banned banks from handling bitcoin transactions...and now, they've completely banned crypto.

What happened: China's central bank has said all cryptocurrencies are illegal. Which means, all crypto-related transactions (including mining) are now banned.  

What else: The Chinese Government claims it's due to environmental concerns...but they've also got plans to release their own digital currency. It's likely less a green move, and more a power move.

So what's the key learning?

💡This is all about "The Great Firewall of China". China has a history of censoring all things digital in order to control information in the news and online.  

💡In fact, it's been ranked last out of 65 countries in terms of internet freedom. We know that China already blocks tonnes of Western media, like Facebook, Instagram and some Google services. 

💡The Great Firewall has not only seen external content censored...but it's helped develop China's own home-grown companies, like WeChat, Didi and Alibaba. Now, we're seeing the same thing, but with cryptocurrency.

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