China Bans Crypto Storage: Shockwaves Hit Global Markets
The post China Bans Crypto Storage: Shockwaves Hit Global Markets appeared on BitcoinEthereumNews.com.
The media reported that Chinese authorities have introduced a ban on cryptocurrency storage. Earlier, the country had already declared mining and trading in digital assets illegal. The crypto market fell in response to the news. Here is how the latest ban by Chinese authorities may affect the crypto industry. Subscribe to our newsletter and get updates on what’s happening in the Web3 world straight to your inbox! What Happened The Chinese government has announced new restrictions on the crypto community. Authorities now ban not only the trading and mining of cryptocurrencies, but also the private ownership of digital assets such as Bitcoin. The ban could encourage greater decentralization of cryptocurrency use in Asia, as users seek out jurisdictions with more favorable policies. The decision underscores the Chinese authorities’ desire to centralize control over the financial system, especially amid the promotion of the digital yuan. The national cryptocurrency is a central bank digital currency (CBDC). Control over the circulation of the digital yuan is entirely in the hands of the authorities. Regulators see traditional cryptocurrencies such as Bitcoin as competitors to their CBDC. These restrictive measures aim to reduce Chinese users’ interest in other digital coins. The decision to ban private storage of cryptocurrencies was preceded by news of the sale of confiscated cryptocurrencies by Chinese authorities. Even after regulators sold some of the coins, China remains second among countries with the largest holdings of BTC. The PRC has 194,000 Bitcoins worth $20.6 billion on its balance sheet, or 0.924% of the cryptocurrency’s total supply. The sale of such a volume of BTC could be a powerful blow to the market. At the same time, it is not known whether the ban on crypto storage extends to government agencies, or whether China plans to liquidate all its holdings. Countries with the…
Filed under: News - @ May 31, 2025 5:28 pm