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UncategorizedChina’s relation with cryptocurrency in the last decade!

China’s relation with cryptocurrency in the last decade!

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When it comes to the most active nations in the cryptocurrency industry, china used to lead the chart in 2020, but in 2021, china became a nation with an absolute ban on digital currencies. You can use the https://bitcoin-investor.app/ to learn about the functionality and dynamics of bitcoin trading. Since releasing cryptocurrencies, China has had an uneasy relationship with this marketplace.

Photo by Alesia Kozik from Pexels

At some points, china seemed to have a very friendly stance towards this monetary system, and at a few points, china did not support the concept of digital currencies. However, the government of China did not come up with the decision to ban cryptocurrencies out of nowhere. For the last eight years, China has struggled to make a proper set of rules to utilize digital currencies. The Relationship of china with cryptocurrencies is still not definite yet. Here is a complete history of china with the cryptocurrency marketplace and cryptocurrency mining.

Key Takeaways!

  • The citizens of china adopted the concept of cryptocurrencies at a very early stage. Only citizens of a few countries were familiar with cryptocurrencies in 2012, and china was one of the few countries.
  • As per reports, the majority of the countries took an active stance toward these digital coins after 2017, whether it was about banning digital currency or formulating a proper cryptocurrency regulatory framework.
  • Since citizens of china were highly impressed by the notion of this digital coin, a creator in china only developed the first-ever cryptocurrency exchange. The name of the first-ever cryptocurrency exchange was BTC china, as bitcoin was the only primary virtual currency existing at that instance.
  • China has regularly tried to impose an absolute and implicit ban on digital currency. And recently, china finally imposed an utter ban on cryptocurrencies.
  • Since China is highly impressed with the notion of cryptocurrencies, they have created a stable coin linked with the fiat currency of china named the Renminbi.

China’s Relationship with cryptocurrency in the early years!

China’s Relationship with digital coins like bitcoin began in early 2010 when bitcoin came live for trading. At first, people used to think that bitcoin had a value equal to fiat currency. Still, later the value of bitcoin surged, and people realized that bitcoin is an independent investment asset and monetary system that depends upon a few factors only. As discussed above, when it comes to the most active countries in the cryptocurrency industry in the early years, china tops the table.

In 2010 bitcoin was listed on some trading venues, but in 2011, china formed the first-ever dedicated cryptocurrency exchange named BTC China. Subsequent BTC china’s numerous cryptocurrency exchanges came into live action. Coinbase and Kraken are the two oldest cryptocurrency exchanges. Binance is one of the latest exchanges but has managed to acquire the trust of millions of cryptocurrency users. 

China embraced cryptocurrencies by welcoming dedicated bitcoin mining hardware manufacturers named application-specific integrated circuits. Bitmain, a company known for manufacturing bitcoin mining hardware, made china highly active in the bitcoin mining business as this hardware made mining profitable.

Recently Bitmain went public with a massive valuation in the international market. Bitmain has not only spread its root in the bitcoin mining hardware industry but also in the mining pool industry as well.

From 2014 to 2017, bitcoin mining grew significantly in china. In 2020 china reportedly created the maximum number of hashes on the electronic ledger of bitcoin. When bitcoin mining became a full-proof business in china, the government started to worry about environmental concerns related to bitcoin mining. Moreover, the Chinese government announced many regulations regarding cryptocurrencies.

China’s relation with cryptocurrency from 2019 to 2022!

China’s relations with cryptocurrency in the last three years are not very good. For example, in 2018, china became the first-ever country to impose an absolute ban on the concept of initial coin offering. In addition, the nation did not have favourable rules and regulations regarding the use of digital currency as a payment method.

In 2020 china will become exceedingly active in the cryptocurrency industry. But in 2021, china became very aggressive towards the cryptocurrency industry and imposed an utter ban on this industry. Moreover, this digital currency is prohibited in every region of China. So even if you want to invest in a cryptocurrency, you cannot do that as well in china.

The above-listed portion explains china’s Relationship with cryptocurrencies in the last few years. 

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