The Chinese ban on Bitcoin in mid-2021 drastically affected the cryptocurrency market, which had previously been continuously growing. The fall of the main cryptocurrency pulls down almost all other crypto assets with it. And there is no end in sight. It all started with the initiative of the national bank of the PRC, which called crypto assets a threat to the country's financial security. As a result in four provinces of China, mining is prohibited, and the five largest banks in the PRC have been banned from conducting operations with cryptocurrencies.
The ban also affected China's largest merchant system, Alipay.
As a result, Alipay and the five largest banks issued a joint statement saying they will no longer transact in cryptocurrencies for organizations or individuals. Alipay's affiliate online store Alibaba has also joined the ban. At the same time, there have been mass arrests of the organizers of financial pyramids and money laundry schems in China. And the Chinese social service Weibo has closed many accounts of traders and other opinion leaders in the cryptocurrency industry.
For the cryptocurrency market, it is not the Chinese ban on Bitcoin itself that is so dangerous. After all, this is not the first ban or the first negative news coming out of China. More important is the example that the PRC authorities set for other countries. In Thailand, 4 types of cryptocurrencies have been banned from trading on exchanges: these are "meme" tokens like Doge, NFT tokens and coins issued in honor of individuals (for example, actresses or football players). After all, other countries in Asia and the Pacific are also looking up to China.
The second most important country for Bitcoin is the United States.
And after the entire US was shaken by a hacker attack on a strategically important pipeline, the authorities unleashed the persecution of anonymous payments in the crypto. At the same time, the SEC is increasingly warning investors that cryptocurrencies are risky investments, and rejects applications for opening cryptocurrency exchange-traded funds in the United States. The Federal Reserve System calls the Tether cryptocurrency a "challenge" for financial stability. And there is a good chance that the SEC will introduce repressive measures against such a popular cryptocurrency as Binance Coin. What can I say here?: "Winter Is Coming".