Apparently, such words as "decentralized", "uncontrolled", and "independent" cause panic among governments with an authoritarian regime. Perhaps this is the reason why China has recently changed its stance on BTC from cautious to extremely negative.
China decided to ban bitcoin mining and related trading activities as part of efforts to fend off financial risks. "Bitcoin is no longer an investment tool to avoid risks. Rather, it's a speculative instrument. The cryptocurrency is a lightly-regulated asset often used in black market trade, money-laundering, arms smuggling, gambling and drug dealings," Chinese officials pointed out. Beijing also said that it had to urgently stop the hype and chaos around the virtual currency as it may lead to financial risks.
The ban on operations with crypto primarily concerned financial institutions but then the government shifted its focus on retail investors. Naturally, there was no official prohibition for individuals to work with BTC. Yet, there is no doubt that it might be a matter of time. The ruling Chinese Communist Party has always been suspicious of digital assets as their decentralized nature has been considered a threat to the state monetary monopoly.
Hence, nobody is surprised that China is tightening its control over the crypto market. This move will have an impact on the entire financial system. Currently, the country is taking new steps to restrict the mining of cryptocurrencies and their payment opportunities which are sure to deal a severe blow to the crypto market, TRON founder Justin Sun underlined.
