Topic: The real reason why China banned Bitcoin. (Read 497 times)

We all know what kind of game China is playing. But how will it end?

China believes that if you invest in counterfeit currency, if you are scammed, no one can help you get it back. If you invest in fiat currency, the government can help you get it back. It may also be that the Chinese government feels that it cannot control cryptocurrency and has implemented a policy of prohibiting mining, but the country is generally for the benefit of the people. It cannot be said that China's approach is completely wrong, but it is obviously not very smart.

China is even developing their own blockchain.
China's decision to ban bitcoin is a controversial decision, because China is one of the countries that has supported the development of bitcoin and in its own country there are many Bitcoin miners who currently have to move because they have been banned from mining in China.
China will likely develop their own digital market segment and they will not rely on Bitcoin

I understand Buddy, you have to speak good of your country, with all you have said, we're now convince China isn't against the success of bitcoin. Are you happy now? Lol how would banning an industry that brings about financial freedom/education to the masses in the best way possible be a good thing to the average individual that can't even get an assistance from the government?.

Just like my country nigerian banning banks from engaging with bitcoin related activities, China's situation isn't different, it is just one of the means of frustrating the general masses so they disassociate themselves from the idea of been in charge of their own financial decisions. The China's government are only interested in controlling her citizens through controlling their finances and that's all what this whole fud is about.

Seens freedom of speak isn't practice over that side of the world because I see no reason why someone will openly support the wrong doings of their government. If they're that interested in renewable energy, what are they doing towards the stoppage of industry and vehicle making used of fossil fuel?.

There can be many theories and reason for China banning bitcoin. They, are trying to be stay as first economic power of world and bitcoin is totally against it by giving freedom to people. In the other hand, some income of the China government will earn from the tax they get and using bitcoin people can not pay the taxes easily. In the other theory China want to be first power and central of the economic power and decentralization of bitcoin will not let them do that. The bitcoin frauds and drug dealing trades using bitcoin can be also the reason be not a good and strong reason for China.

While I just believe that all the OP said was his guess on behalf of the Chinese government regarding the ban on bitcoin based on his confession which I quote below.


OP, as a Chinese citizen, it's still possible that you don't know exactly what your government's goals are behind the bitcoin ban. There are a lot of thing they don't reveal to the public when you are completely controlled by the government. I don't believe that your country's government doesn't want anything from bitcoin until they decide to ban it. If they want to prevent fraud and keep their people from losing their investment, then ban it in my opinion is not the right solution. I feel there is a hidden purpose to the bitcoin ban scenario in China that has yet to be revealed. I know China as a communist country whose government really want to control everything.

I appreciate you coming forth with this information.  I am curious, is bitcointalk.org a non-banned website in China, or do you have to use a VPN/Tor to access this site? I am also curious if you are located in China, or Hong Kong? While I certainly agree with you that China is probably somewhat concerned about the carbon emissions, I do not believe that this is the main reason for them banning it.  China is a communist nation, which controls everything.  As you know, life is highly controlled and the Chinese citizens are stripped of many basic freedoms.  There is a reason the government created the Digital Yuan (Bitcoin replacement that can completely track it's citizens every moves).  China is far more concerned about keeping tabs on it's peoples every day doings than it is with climate change.  Again I am not saying they don't care at all, because I'm sure they do to some extent.  Also lets be honest, you can't speak ill of your government even if you wanted to..so that is something I think that needs to be factored in to this conversation.  

That makes sense if you say that China government want to stop people from investing in crypto and they want to prevent people from getting scam. Yes, that is happening in many countries and not just in China. People tend to invest in crypto because of the promising of making a big profit quickly. When they see the crypto price increase high and many new projects releases and give people a big profit, that makes many people out there just invest in crypto without research. Unfortunately, that is not a wise decision to invest in crypto without research. Still, the government or us can not stop them.

Maybe the Chinese government wants their people to use digital Yuan and understand how to use it before using crypto. When they invest in crypto, their people will have an introductory lesson on using crypto properly.

We can see that when crypto booming and start the rally, people out there amaze and even shock because they do not think that crypto can really be at the top price. So when China banned bitcoin and did not allow their people to use bitcoin, it is really impacted to bitcoin price. But I am sure that the bitcoin price will be back to the high price. But that is speculation because we never what is the reason of Chinese government ban bitcoin.

The real reason China banned bitcoin, I think China is afraid of being rivaled, because we know China can't control bitcoin under the control of their government, seeing the rapid development of bitcoin, and there are countries that legalize bitcoin, they are starting to be wary...

Maybe they want to manipulate and dominate in the market since other from that reasons they don't really have strong reasons why they do that, although the risk is so high here for sure this is tolerable since there citizens are earning with it and together with other things around crypto.

I had a feeling that they will regulate and impose some taxes since we know cryptocurrency is growing industry and this is additional income for there country if they a successful on manipulating it.

Hard to really see what China is doing because they've had some Chinese projects which they seem to be okay with the NEO and VET platform. But because there is no way we can have real honest information from the people there but from the media publishing more lies and fud. I would however want to believe that China isn't going to completely ban crypto but will integrate BTC on their CBDC too.

Yes, because that, they will easily understand unlike a foreign currency they know nothing about. It will be difficult for the government to bring knowledge to the whole nation of China in regards with cryptocurrency.
The easiest path would be the same currency (yuan) but just upgraded. (digitized) There won't be need for long explanations about it. It's the same as their paper money but there is just no physical attribute anymore.
I think that's also the point of OP. Teaching 1.4 billion people is way difficult than just suggesting the same thing, just version 2.0.

As far as I've read most of the replies, these claims is just plausible and I now believe that they really don't tell secrets that goes outside of their country. I don't know if you are living in China or just left there and live on another country because as far as I know they have full control of all the information inside their country. I mean they've restricted lots of platforms and application on their country that's why it's not easy to share these kind of information that's related to their country.

So if you are living outside of China, then your claim may be irrelevant to why they have banned Bitcoin.

China is indeed trying to make Digital Yuan able to dominate the market in China, if Bitcoin is allowed they do have a fear that Digital Yuan will
lose to compete. So indeed China is the country that most often spreads FUD, in order to make the Bitcoin price fall. Not only spreading FUD,
China is also the most frequently banned against Bitcoin. Indeed from the beginning China did not like Bitcoin, which they cannot control. That is
a strong reason why China most often banned Bitcoin.

I also think that is the reason why China is trying to eliminate Bitcoin.  The Chinese government fears that their digital yuan will be ignored if Bitcoin market is left unchecked because people tends to flock in to Bitcoin economy that patronage their Digital Yuan.   With this fear, China since they have the authority in their jurisdiction put pressure to both cryptocurrency holders and supporters in order for them to divert their attention to the Gov't Digital Yuan.

The issue about China and crypto caused so much chaos wherein FUDs are not the only things that spread due to it but also false information about China's reason why they chose to restrict the use of bitcoin. Overall, if we were to analyze their reasons, it falls down into their plan of embracing bitcoin soon. China is a huge and powerful country and most of the things they do would affect anything that it gets involves with like for crypto, as the banning of bitcoin takes place, the impact is clearly shown at the price fall in bitcoin. Nevertheless, let us hope things would get settled between crypto and China in the future cause it would be beneficial for crypto to have China on their side.

I'm sorry, op, but aren't you just repeating Chinese official propaganda? Of course, China says it's about environmental impact of Bitcoin mining. But don't you think that it's very hypocritical of China to suddenly care about the environment when it comes to Bitcoin mining, while China is the biggest polluter in the world? Why don't they back off from coal, which is the biggest source of air pollution in China? And offering programs which are related to moving away from coal would be a big win overall, including making Bitcoin mining cleaner.
And the second reason of people losing money is also very pro-government, making a point for a paternalistic state that chooses what's good or bad for the people and banning things in advance to protect people, instead of letting them make their own choices.

This Carbon neutrality thing is total bullshit and I even wonder if OP is not working for the Chinese government? (Doing some damage control)  

If Carbon neutrality was the real issue, then China could have implemented some policy to only allow Bitcoin mining in areas where renewable energy was produced. (They decided to blanket ban it, which says something totally different)

Why hide the fact that the Chinese government wants full control and that Bitcoin is a threat to their control? Why hide the fact that they are creating their own centralized Digital reserve currency and that they are trying to eliminate the competition?  

This is what i also believe as they are starting this war massively against bitcoin after announcement of their Digital yuan.
things that i do believe is the reason of the recent final Mining and banking banning of bitcoin operations .
And this brings big impact to the market recently , as the social media is what do been used for this spread and eve if this called Fud or reality yet this brings the market drops.

This is quite a valid reason but why wait this long in the first place and instead of being reactive to the situation why didn't they provide solutions to the miners.


Have followed several Chinese traders, youtubers and many other forums and this doesn't look to be the case...would you back this up mate  😉

How does one end up bankrupt when you have a cash equivalent  asset

I don't think any government would spend much time educating people about cryptocurrencies. China is no different. Instead of banning bitcoin mining, they could have been more serious about ICO's/IEO's and unlisted coins and tokens. They already banned ICOs in 2017/2018 and prevented crypto exchanges from operating on the mainland. So the claim that they are protecting their citizens from scam projects and risky investments can't be true.

You believe China is very focused on achieving carbon neutrality?. look at all factories in china, on average they even spread pollution and have a carbon problem. but why they only ban crypto mining?. when viewed from the use of electricity for mining, it is even lower than the use for industrial plants. okay let's put this issue aside, only the Chinese government knows what the real purpose of this ban is. but what about the other restrictions. this is even very serious, they seem to want their citizens to stop using crypto again.

If they feel innocent people are being ripped off by some crypto projects they can always do the most simplest and basic thing which is openly educate their people about the implications involved in investing in crypto rather than stooping so low to create unnecessary fud, if you say this fud are not meant to suppress the price directly but their implications is affecting price indirectly, I think there is a deep interior motive behind their constant banning of btc and not just this simple theory of yours.

In China, everything is the same as in Russia. If citizens are sick with diarrhea, but to combat this, all public toilets in the country must be closed and the problem will be solved.
How does energy work in China? Can the Chinese authorities channel this electricity to other parts of the country, or will they build production on the site of former mining farms?

Banning cryptocurrencies to combat the ignorance of the Chinese people is a bad excuse. Why don't they organize education instead of banning cryptocurrencies or Bitcoin? Bitcoin mining is very profitable for the miners of this country. Apparently, the ban on cryptocurrency mining has cut off a portion of the profits.
I think China's CBDC currency has been tested, so the most likely thing is that they will put them into circulation to dislodge businesses that have already entered the field of cashless payments like Alipay, Wechat and other money transfer services.

three state-backed organisations, including the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China issued a warning on social media.

There you go...points raised well. Now, on carbon neutrality,  why ban the whole thing when there are some miners that are really using cleanly-sourced energy? I think the Chinese government is just using any probable cause as a way to divert the attention of some to the real issue. Anyway, I actually do not care if China is not going to allow Bitcoin or any coins to be held by its people. And it is actually good thing for Bitcoin to have miners leave the country so no single FUD can be coming from China in the next few months. Are we not tired of this same stories again and again?

LOL..I call this bullshit if this is your honest "understanding" of the CCPs actions. In the worst case, you are probably just another one of CCP social media warriors whose job is to help manage China's "image".  The Chinese have for long maintained a list of the "innovative" cryptocurrencies and routinely rank shitcoins like EOS and NEO above Bitcoin. So please don't insult the intelligence of people on this forum by coming up with excuses like, "Oh, they don't want people to go bankrupt from shitcoining".

The only reason for these bans is that the Chinese probably want people to use their centralized CBDC rather than cryptocurrencies.

Another important reason is that for all the propaganda that CCP drills in the society, i believe that it must be refreshing for so many of the Chinese nationals to actually have a voice in shaping the future of cryptocurrencies projects. The Chinese people are devilishly clever and pretty brilliant, nobody can deny that. Yet, the CCP strangles the natural yearning of man to have a free voice and free thought. That yearning finds expression in crypto communities. All the communities that i have seen in Alt-coins, the Chinese are usually one of the most active ones. I don't think the CCP can have so many people getting ideas of democratic voting, governance and decentralization into their heads.

A ban is then the easiest way to control this and keep the people in control.

So frankly, stop bullshitting the people on this forum by claiming to represent "China" and then making excuses for something that the CCP does to maintain control. If you are truly a free-thinking man/woman behind that screen, stop this charade.

The reason China banned bitcoin, maybe they are afraid of being competed, because bitcoin can't be controlled by the Chinese government, maybe they are afraid, their yuan currency collapses, the problem of running out of carbon, lack of energy, which is said to be caused by bitcoin mining, it may be just a small problem... but I think they are afraid of being rivaled by bitcoin..

there is not $50bilion "going out"
when a chinese person puts their fiat into a bank account. and then wires it to another bank account
the funds are still in a chinese bank account. all that has changed is the name of the chinese bank account holder, holding the chinese fiat.

chinese fiat is never destroyed, it still circulates chinese banks. its just the bank account name the balance is held under that changes

when someone buys bitcoin. another person is selling.

china does not like "red letters" being sent abroad. where bank notes end up in other countries. and then held by say american exchanges
but wire transfers stay in the chinese banking system where only the chinese named account holder changes

..
as for mining
china is on the mission to stop home-hobbiests/ illegal miners that are in regions of fossil fuelled domestic electric networks

as for exchanges
china is on a mission to stop the non-regulated/uninsured exchanges that dont pay taxes. exchanges that accept chinese fiat deposits but dont have money-service licences, or do tax evasion
any exchange that accepts fiat deposits is not immune to fiat laws, just because they also handle crypto
crypto does not immunise exchanges from their fiat laws if they also accept fiat as half of their business

for instance the UK banned binance. due to binance not wanting to comply to all UK fiat laws
(promising high return investment options, but not supplying a insurance scheme should binance not meet its promise)

You are commenting on the policies of China and in a free society you should never have to apologize for displaying a rational opinion. China is a country based on censorship - both from the government who would rather hide incompetence than deal with it correct and the people who accept the system of self censoring. It is a very insular society and that is very dangerous for the world - The CCP would rather make an imaginary enemy than admit to certain failures. Until Xi Jinping came a long they always claimed a peaceful path and were a lot more respected, he has thrown that all away, now we see the war mongering and childish insults every day. This move was partly in response to environmental concerns but I think a large part of it was the easy money laundering route it gave people to get money out of China. The CCP wants absolute power (Nazi Germany anyone?) and any sane official wants their money out of reach of the communist party - Bitcoin was providing a very easy way to move money abroad.

China's policy is the result of many considerations. Maintaining carbon neutrality, protecting the people, and preventing capital from flowing out of the infrastructure sector are all part of the reason. If the three problems are resolved separately, there may be a better choice, but this is not possible. If clean energy mining is used just to solve the problem of carbon neutrality, there will still be people who use cryptocurrency to obtain illegal income, and there is no guarantee that the funds will be used in infrastructure.

In fact, I admit that every country has uneducated people who invest in cryptocurrency. But you may not be able to imagine how big this ratio is in China. I study cryptocurrency in China every day. Many people buy shibcoin but don't know who Satoshi Nakamoto is. This is unimaginable in other countries. If 90% of the people in an industry do not understand this industry, and the industry is still difficult to be supervised by the government, what do you think is a reasonable approach?

As for gambling, I don’t know if my understanding is striving, because I have never bought a similar sports lottery. But buying sports lottery tickets in places operated by the state can guarantee that your profits will be honored, which may not be possible in some illegal places. Please correct me if I am wrong.

It is a pleasure to communicate with you.

If China directly say that we restrict Bitcoin mining in order to achieve the goal of carbon neutrality, it is tantamount to telling the public that there is no problem with cryptocurrency but only to achieve carbon neutrality. In this way, the second point cannot be achieved, restricting people's participation in the cryptocurrency market to prevent losing money.



Thank you for your trust. I am also very happy to share the real information about China with the members of the forum. It may be that my expression is not perfect, and you have misunderstood what I mean. Just like the shitcoins you mentioned, there may be tens of thousands of projects imitating shitcoins in China. These people issue cryptocurrency only to defraud the public of money. I must admit that most Chinese projects are rubbish, and new rubbish is generated every day. Only by banning BTC, the source of cryptocurrency, can people be afraid and stay away from cryptocurrency. In fact, China Central Television once did a program that explained in detail the process of issuing digital currency on UNI. The purpose is to distinguish these low-cost garbage without any innovation from BTC, but few people receive it.


Everything is my guess. For carbon neutrality, please refer to this paper: https://www.nature.com/articles/s41467-021-22256-3.

By the way, I am not a government worker, and Chinese government workers are not allowed to enter the Bitcoin forum.

If China cared about the environment and wasn't interested in eliminating the competition as a preparation for the digital yuan, why not kill off every industry that doesn't use renewable energy? If too much fossil fuels are used in the mining operations in China, why not give the miners a deadline of 1/2/5/10 years to switch to better sources of electricity instead of preventing them from conducting their businesses within a few days or weeks?

There are uneducated people all over the world who invest in bitcoin among other things. Your statement that they are trying to protect its citizens is simply wrong. Gambling is if I remember correctly banned in China, but you are allowed to play lottery in locations the state deems as good (the ones run by the state). How do you comment on that? Chinese citizens are protected from losing money in private casinos and sportsbooks, but they are free to lose it in establishments that pay taxes to the government and are operated by them.    

I read what you said, I don't blame anyone in this case China vs Bitcoin, I know very well the Chinese brain, their actions in trading excellence, Bitcoin is their next target.

So, back to your topic and your story, I turn to ask you.
• where did you get all the stories from.
• what you are telling has sources to read.
• and one more thing, are you one of a group of governments that are currently viral.

As far as i know china is cunning, they won't reveal anything secret, before they make big profits.

So you say that Chinese government really cares about its people and doesn't want them to make huge mistakes while investing into some cryptocurrencies. But still, it should be left to the people's choice. Because we see many countries letting their people trade cryptocurrencies.

How about 'capital fight'? There is a reported $50 billion going out of China through crypto which is against the Chinese rule. I think this is only one reason why they suddenly put a stop specially on bitcoin because they don't want their people taking out their money out of the country.

And as the country suffers from trade wars, they wanted all their money go inside their country to help fuel the economy. But if bitcoin is deemed to be a threat, then obviously, the Chinese government has to do something about it right now.

The legitimate cause is the wild fee gyrations of cryptocurrencies, which undermine the security of markets and monetary activities. ... Crude oil had an sizeable gyration for the duration of the pandemic, with futures costs turning terrible for may additionally 2020. but, no government came out looking for to prohibit futures oil contracts.

It's always better to get information about China from a Chinese.
I don't trust the crypto news websites,that are spreading FUD,rumors and gossips about China and the cryptocurrency miners located there.

So the Chinese government wants to ban Bitcoin,because many Chinese are buying shitcoins and losing money?
That doesn't make any sense,why don't they just ban shitcoins and leave Bitcoin and ethereum.

I get the idea of banning crypto mining because of carbon neutrality,but there are many industries in China that are producing way more CO2,but the government won't ban them,because it will cause unemployment.

Aren't China trying to eliminate competition for their Digital Yuan, that's why they crack down on mining in the country because they want to make sure that Digital Yuan will do good? I don't get how they don't say that they want to do it because they want to reduce carbon contribution, most articles don't even mention it.

China believes that Bitcoin, as a virtual asset, has regulatory risks. It also has the characteristics of anonymous circulation and centralization, which makes it difficult for the supervisory authority to play a supervisory role, and it is easy for criminals to use Bitcoin to launder money. And Bitcoin is not issued by a Chinese government agency, and it is not a real currency. It is calculated by network nodes, so Bitcoin cannot replace traditional currencies. The management also made it clear that Bitcoin is not a currency in the true sense of the word, denying Bitcoin's currency status. Recently, Bitcoin has been shut down to prevent a series of unpredictable financial risks. This is what everyone can see. As for whether the Chinese government has privately levied coins, we don't know, perhaps through various news, suppressing the price of Bitcoin, so as to get more low-priced bargaining chips. It is also possible to face the open and transparent technical code of blockchain technology and Bitcoin. Innovate to issue China's own digital currency to resist the position of the dollar's leader.

I am a Chinese who was exposed to Bitcoin earlier. I hope to analyze the reasons for China’s Bitcoin-related policies to eliminate FUD against China.

Recently, FUD about China is often discussed in forums. China has successively issued a number of policies to prohibit the use of Bitcoin in China, including banning mining and banning bank card transactions in Bitcoin. Many people think that the reason why China is doing this is the decentralization of Bitcoin that is difficult to regulate, but this is only a small reason.

The biggest reason for China's ban on Bitcoin is carbon neutrality. China’s carbon strategy roadmap is to achieve carbon peaks before 2030, achieve carbon neutrality before 2060, and even initially achieve carbon neutrality by 2030. According to the Bitcoin Mining Council report on July 1, 2021, 56% of the energy consumed by Bitcoin mining is renewable energy. But in the past in China, although the specific proportion was not announced, the proportion of renewable energy such as hydroelectric power generation must be far smaller than this figure. This is not conducive to China's goal of achieving carbon neutrality. In order to achieve this goal, all industries need to make way for it.

Another important reason is the unprecedented chaos in China's cryptocurrency industry. I believe that if the Chinese people just invest in Bitcoin or Ethereum, the Chinese government will never prohibit the transaction of Bitcoin. Unlike the United States or Australia, many Chinese who invest in cryptocurrency don’t know what decentralization is, just blindly follow the trend to buy some unknown coins. Chinese investors lack the most basic understanding of the cryptocurrency industry, most people end up in bankruptcy. Only by restricting mining and restricting bank card transactions can China prevent these ordinary people who have been deceived by become parvenu from joining cryptocurrencies. The reason for the Chinese government to create FUD is not to suppress the price of Bitcoin, but to prevent ignorant people from losing money in the cryptocurrency field.

Finally, China's current development focus is still in the manufacturing or infrastructure fields. In China, finance or economy is still a very abstract word for most people. China's overall strength in the financial field lags far behind the developed world. Therefore, the current strategy of the Chinese government is to stabilize the economic foundation first, and after improving the people's knowledge and living standards, it will begin to develop at the financial level. Before that, it is necessary to ensure that China's overall capital flows to the real economy rather than various financial field.

There are some misunderstandings about China on this forum. I do not comment on the policies of any sovereign country, but in ten years, we may see a China that actively embraces Bitcoin. Although China may still issue policies that have a negative impact on Bitcoin now.