So far in history now, obviously china had banned crypto before theyd banned bitcoin before and they banned mining before, but there were always workarounds and there were loopholes and, to be perfectly honest, the rules just werent enforced to their fullest extent. This new news leaves no room for interpretation, china and the ccp are not playing around anymore. Crypto is illegal, mining crypto is illegal, holding crypto is illegal, exchanging crypto is illegal. This goes for bitcoin and ethereum and dogecoin and pretty much everything else. You can imagine as well even stable coins like usdc tether or die theyre, going to be illegal as well, because the ccp considers them cryptocurrency and with the way the ccp is with crime. The way they deal with criminals, this isnt, the kind of rule you want to mess with today, were going to discuss the ban, how it differs from the previous bans weve seen in the world and what it might lead to for the crypto industry and for people In china in general, but really quickly, if youre new to the channel make sure to subscribe, if you want to help the channel grow and ensure that we can continue to make content just like this, then consider helping us out through our brand new patreon link is In the description, so what exactly is going on? Well? Last week china announced their toughest rules yet surrounding cryptocurrency bitcoin mining. Basically, anything in the decentralized finance space 10 state run agencies, including the central bank, the financial regulators and the foreign exchange regulators vowed to work together to root out crypto activity.

Now that may not sound like something thats really that important or relevant. But regulators in china have never done anything like this before the ccp are really going for it. This time in the past, when news has come out that china has banned crypto, its usually just been the ccp making some vague statement or one agency announcing that theyre going to be tougher regarding the rules. This time, however, its 10 agencies, working in conjunction with each other, ensuring that crypto and that whole industry really is going to suffer in china as with most things in china, its a little bit vague at the moment. We do know that all crypto transactions are illegal, whether its bitcoin ethereum or stable coins, it doesnt matter what the crypto transactions are. They are all going to be illegal in china. Now it is worth mentioning that no one really knows how to define crypto you, and i probably have different definitions and the sec in the u.s has a different definition to what the ccp defines it. As there are regulatory authorities all over the world who are currently as we speak, trying to squeeze crypto or stable coins into the asset classes that we currently have, but most people agree that crypto bitcoin ethereum stable coins. They are a new asset class and they need to be treated as such. Nobody really knows how the ccp plans to define crypto, but its a difficult thing to do and theyll probably just do it after the act, the obvious ones like bitcoin ethereum and die theyre.

Obviously, going to be defined as crypto things like nfts well, i dont know, but i wouldnt be surprised if they just consider that crypto as well and make that illegal. Also its also worth noting in that offshore exchanges offering crypto services in china are illegal as well. That means companies like binance or kuobi or now, obviously, in this day and age, most of the worlds crypto use has already left china, but what hasnt already left will probably now leave. We all know that mining used to be a huge industry in china. Over half of bitcoins hash rate used to come from china alone, but its already dropped a lot really. We can expect it to continue to drop as well now as for chinas past with crypto. Anyone who stayed clued up to the news over the last few years knows that this isnt, really any news. China have banned crypto before theyve done it multiple times and theyll. Probably do it again at this point its starting to look like theyre, just trying to manipulate the crypto markets to make them seem more volatile than they might be. This goes pretty far back as well. First, the peoples bank of china banned banks and other financial institutions from transacting in bitcoin or anything related to bitcoin back in 2013.. They warned their citizens and people in general against using bitcoin or anything like it as well. They said that, because it had no state backing, that meant it was unreliable and prone to fraud and also that it was used to launder an awful lot of money.

Whether or not that is true is irrelevant, thats. What the ccp said now at this point in time, bitcoin had just risen above a thousand dollars which might sound low to us, but back then that was huge news and a really big, all time high for them to reach. But when china came out with this news and basically banned bitcoin, it dropped 30 instantly in 2017. During the last crypto bull run, china banned icos. They said its illegal fundraising and they also banned any companies from helping with icos. They announced that any exchanges based in china would basically have to shut down, and, while many of them did a lot of others, just left the country like binance and This was really the start of china, destroying their own crypto industry and pushing it overseas. Now, in 2019 the ccp attacked crypto, mining or specifically bitcoin mining, because it was too polluting. Now i know thats rich coming from the country that burns more coal than anyone else in the world and pollutes more than any other country in the world as well, but that was their justification behind it at the time. This was pretty scary because over half of all bitcoin miners in the world at the time were based in china, and no one really knew what was going to happen with this. In 2020, the ccp and the peoples bank of china, cracked down on crypto even further. This time they claimed it was used to facilitate money laundering and fraud all over china and the world, and they banned over 100 foreign websites offering crypto in china in may 2021.

The ccp basically reiterated their statements that said that all crypto related activities are illegal. In china, whether it be mining or transacting or just holding now in the past, china had focused on bitcoin in particular, but these days theyre starting to target crypto as a whole. Obviously, every time china has banned bitcoin, the markets have suffered to some extent, but each time theyve been getting more and more resilient. Whether or not this news, the one thats just come out, is actually a big deal or not is debatable, but personally i dont really think it is prices of bitcoin and the other major cryptocurrencies have already recovered to where they were before. China announced this most recent ban, the largest cap cryptos like bitcoin and ethereum. They dropped nine percent on the news that china were again banning bitcoin but theyre already higher than those levels today go back seven or eight years, and when china banned bitcoin, then the entire market dropped 30 and it took a long time to recover its clear that The entire crypto market has gotten a lot more resilient to these moves by the ccp now, just because the markets have fully recovered. Today we still dont know where the markets would be if this news had never come out, but to be honest, it really doesnt matter that much. Obviously, china have always hated crypto. It represents freedom from the ccp, and this new news is in no way a change from the past.

This new development could go to push more miners and more exchanges out of china and help decentralize the system further, which is actually a good thing and could positively impact the market as a whole forever. It will unfortunately be harder and riskier for people in china to use crypto of all kinds, and we can expect that usage to fall. I want to thank those that have joined my patreon ive, just set it up this week and im, hoping that it gives me more financial security and allows me to continue making this kind of content. So if you like these videos – and you want to help support the channel, then the link is down below in the description. If you remember just a couple of weeks ago, i almost had my channel deleted by youtube, and this is one of the things i promised. I would get set up so that they cant threaten me like that. Again, you can help support the channel for just one dollar a month. You get access to loads of extra stuff. That isnt here on youtube and once i reach 100, patrons im going to hire a video editor to help me get more content out every week for you, if youre new to the channel, and you enjoyed this video, then make sure to subscribe. If you want to help spread, the word then consider liking the video and leaving a comment and youtube will do its part by pushing this video out to more people.

Just like you, i really do appreciate all the support you give the channel, even if its just leaving a like. There are also links to my other channels, storage, economy and storage crypto down below in the description that you can check out as well. In the description, theres also a link to my favorite brokerage called etoro, where you can trade stocks and shares crypto commodities, foreign currencies and, more all for zero percent. Commission and theres. Also, a link down below in the description to block fi, where you can get up to 250 in free bitcoin and you can earn interest on whatever crypto you hold, whether its bitcoin ether or even stable coins.