It has been many months since China banned all crypto-related activities. However, the aftermath of it is still visible in the country. A few days ago, a regional leader of the Chinese Communist Party was expelled for showing pro-crypto tendencies. Now the state has issued a warning against all state-owned firms to discontinue bitcoin mining. If these firms do not comply, penalties would be very harsh, as per officials.
After China banned all crypto-related activities, it gradually worked to completely exterminate bitcoin mining from the country. After an initial wave of arrests and campaigns, the government launched a second campaign through October-November. There were more arrests and stricter punishments the second time. With this new declaration from the CCP, Chinese citizens are now expecting a third round of operations against illegal crypto miners in the country.
When China banned cryptocurrency, it cited harmful environmental impact as the major reason. Over the subsequent months, the government has blamed Bitcoin miners for everything from global warming to coal mine disasters. Now it seems that the state is at the final stage of eradicating cryptocurrency from the country.
China’s extreme reaction to cryptocurrency is a reflection of its authoritarian-centralized society. Cryptocurrency, as a concept, is inherently anti-establishment. Such an ecosystem would find it very difficult to exist in places where people do not have individual autonomy. Bitcoin prices, however, did not suffer any significant damage from China’s ban. On the contrary, it has crawled to an all-time high. How China’s newest decision plays out in the crypto world is still unclear.