Given the growing crackdown on crypto companies and miners, what happens when you try to access crypto exchanges in China after the ban?

What if you try to access crypto exchanges in China after the crypto ban?

The ban on cryptocurrencies in China is becoming more serious. It all started with the warning citizens not to use cryptocurrency transactions, forcing many exchanges to close immediately. This was followed by a national ban on mining such cryptocurrencies. As a result, many large mining companies in several provinces in China have ceased operations and have had to relocate to other destinations to continue their business. It happened just before the Central Bank of China shut down a software company that was involved in cryptocurrency trading.

Wu Blockchain, a well-known news source in China’s crypto market, mentioned that people who live in Sichuan Province, China received calls from the police when they tried to access Binance. Although the police did not threaten them with dire consequences, they certainly informed them that there would be no one to help them in this situation if they should suffer losses while trading cryptocurrencies.

China likes to maintain its dominance over the crypto business by occasionally intimidating business owners. This is a strategy they use to maintain authority and regulation in the market. The Central Bank of China recently warned business owners across China not to allow crypto companies to use their premises for promotional activities. What many are speculating is that these drastic measures show that China is able to issue its own digital currency, the digital yuan, and thereby control competition.

The current crypto ban isn’t the first of its kind, but many consider it the strictest. China’s crackdown is also having a destabilizing effect on the crypto market. The Kraken cryptocurrency exchange has been compiling a list of headlines since 2013 when China began to issue strict guidelines on the crypto market and its subsequent impact on their prices.

The above list shows that while there have been minor short-term downtrends after the restrictions in China, the long-term impact is negligible. According to some, the mining ban eventually helped decentralize the relatively high concentration of miners working outside of China, and many see this as the most positive outcome of the raid.

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