Rebels Lead Resurgence in China’s Bitcoin Mining Activity

Last August, data suggested that China’s crackdown on cryptocurrency was absolutely working, but new data suggests that it’s not breaking the country’s appetite for bitcoin

Sometimes the more one tries to control something the more uncontrollable that thing gets. 

Last September, China raised the stakes of its crackdown on cryptocurrency, announcing a blanket ban on all crypto transactions and mining. 

The country’s largest financial entities, including the People’s Bank of China (the central bank), announced a coordinated effort to stamp out crypto activity that the central government deemed illegal. 

This effort came after the country banned financial institutions and payment companies from providing crypto related transaction services in May 2021. 

The September follow up was “the most direct, most comprehensive regulatory framework involving the largest number of ministries,” NYU Law School adjunct professor Winston Ma told Reuters last year.

The idea was to “resolutely clamp down on virtual currency speculation… to safeguard people’s properties and maintain economic, financial and social order,” the PBOC said, according to Reuters. 

For a while, the strategy worked.