When it comes to the idea of decentralization or cryptocurrencies, you will find China solemnly against the concept. There are regulations drawn as we speak by the state regulators and other monetary offices in China that suspend all crypto activity for the locals as well as crypto mining. Contracts are being drafted, which will be signed by all the crypto exchanges operating within China, claiming that they can’t serve the locals for any dedicated crypto-oriented transaction. This is merely a try on China and to bring a halt to the idea of decentralization.
This was not the same as China was considered a hub for crypto mining back in the day; in fact, more than half of the Bitcoin hash rate was managed through miners operating in China because of low-cost electricity and eccentric opportunities regarding crypto equipment. But then, all of a sudden, out of the blue, China issued a severe crackdown against crypto mining; all the miners and mining farms were destroyed and advised to halt mining of Bitcoin or any other cryptocurrency for that matter at once.
China Is Responsible For Crypto Crash
This led to a market-wide crash, also known as the mid-May crash, in which the price of Bitcoin came storming down, and it was officially trading at $30K, which is the lowest of the lowest for Bitcoin basing it on ten years of data. China is still not done with cryptocurrencies and is issuing new policies and regulations every day to halt crypto activity. The state is calling all regulatory offices and monetary institutions within the country for help to draft more severe anti-crypto policies. Recently enough, all crypto-related transactions were declared illegal, and anyone subjecting themselves to these transactions would have to go through multiple penalties.
Major provinces in China have already banned crypto transactions, and exchanges are only limited to serving the international crowd; they are not at liberty to do business with the locals in any way. Elon Musk has also shared his insight regarding this ongoing battle between China and the crypto industry; he says that no matter how fierce China goes against the idea of decentralization, they can’t eradicate it because it is impossible to do so.