China does not acknowledge cryptocurrencies as legal tender. Additionally, the banking system does not accept nor provide services related to cryptocurrencies.
In order to allegedly reduce financial risk and prevent investors, the government has repeatedly cracked down on cryptocurrency related activities.
It has done so by disallowing initial coin offerings, discouraging mining and restricting cryptocurrency exchanges.
However, the country’s central bank is purportedly considering to issue its own cryptocurrency.
China has been notoriously strict with cryptocurrency regulation. Financial institutions have been prohibited from facilitating cryptocurrency transactions since December 2013.
Additionally, regulation banning cryptocurrency exchanges followed in 2017. By July 2018, 173 platforms has closed down.
In early 2018 the People’s Bank of China announced crackdowns on bitcoin mining.
