Activities involving cryptoassets in China are strictly regulated or banned. When initial coin offerings (ICOs) were forbidden in 2017, the government also cracked down on trading in cryptoassets, forcing crypto exchanges out of business. Banks are not allowed to get involved in any form of cryptoasset services. Even a ban on the “mining” of cryptoassets was briefly considered.
Despite the bans, interest in cryptoassets flourishes. Last week, the Shanghai division of the PBoC shut down several illegal cryptoasset operations. Inspections in Shenzhen also turned up similar illegal activities. As a lot of Chinese evidently still use virtual assets, stricter policies may affect prices of virtual currencies such as bitcoin.