Cryptocurrency is usually affected by the countries decision for example if China, puts a restriction on Cryptocurrencies or Bitcoin‘s itself, this would directly affect the exchanges. China is a big country with a strong economy and labor force. So their decision about Cryptocurrencies is vital because it could easily change the market’s way, and it already changed it. Because of the restrictions that the Chinese government has already published.
China has banned cryptocurrency mining, which affected Bitcoin and Altcoins caused them to crash for some time. The side effects are still active on the market because this ban was permanent. The Chinese government also declared that cryptocurrency transactions are illegal. After this statement, the cryptocurrency market also dropped again. As for any other country, China has an authoritarian centralized, and stable financial system. According to experts, the decentralization of cryptocurrencies is a threat to the centralized Chinese government.
To keep it simple, China has a significant impact on cryptocurrencies more than most other countries. For example, before the restrictions, it was known that they had one of the largest miner communities, but after the statement, they banned mining completely. This made people curious, why did they ban mining? Unfortunately, the answer to this is not clear.
Will chinese government remove bans and restrictions?
Everything can change in the future in any situation. Unfortunately, we don’t know what China is trying to accomplish. But all these restrictions could also be an economic strategy to improve themselves. Cryptocurrency technology is a part of the future, but it is against to Chinese government’s centralized system where the government is controlling everyone. In the future, things can still change if China changes their strategy. The time will show us. Of course, China banning cryptocurrency is not enough to stop the technology of coins. It will only slow it down.