Will China ban cryptocurrency exchanges in 2021?

Despite the ban, there are still ways for individuals to access cryptocurrencies in China. Many turn to overseas exchanges or peer-to-peer trading platforms to satisfy their demand for digital assets.

This ban, while restrictive, did not extend to prohibiting the ownership or mining of cryptocurrencies. Individuals and entities were still allowed to possess and mine various cryptocurrencies, such as Bitcoin and Ethereum.

The 2017 ban primarily targeted the exchange platforms, aiming to reduce the risks associated with unregulated trading activities. It was a response to the increasing popularity and volatility of cryptocurrencies.

However, the 2021 ban introduced by the PBOC marked a more stringent approach. This time, not only were exchange operations prohibited, but also the ownership and mining of cryptocurrencies.

The 2021 ban represented a significant escalation in the regulation of cryptocurrencies in China. It reflected the government's concerns over the potential risks posed by these digital assets, including financial stability and security.