There exists a very hostile environment in China regarding the crypto community. China has imposed a severe crackdown against crypto mining, trading, or withholding. It has issued a detailed summary to crypto exchanges, financial institutions, and banks to ditch all crypto-related products, services, and requests from the local customers. They are only allowed to deal with the international crowd, and that too is happening in a very restricted environment.
Amid this severe crackdown, more than 20 companies have decided to leave China for good and are now planning to move towards friendly frontiers. China has become not only unwelcoming for crypto-related businesses but also general-purpose companies who are only trying to offer their services in this regard to the locals. These twenty companies have decided to leave China and move elsewhere and will also be pulling away all their money and interests from China.
China has Become Hostile Territory for all Crypto-related Business
There was a time when the country hosted the largest crypto mining operation in the world as more than half of the bitcoin’s hash rate was supported by China alone. But with this grand hostile approach, not only has it become unwelcoming but is pushing any investment or foreign interest to invest into the crypto market and related technologies within the sector. At the very end of September, the Central Bank of China published an enthralling document indicating that mining of digital assets along with their trading is strictly banned within China and its borders.
This has led many businesses to shut down their operation in China indefinitely and move to other frontiers until the country is once again wholesome and welcoming to digital assets. No one can know why China is behaving like this as in the past; it never pushed way a great opportunity for investment and business.
It seems like China doesn’t want anything to do with cryptocurrencies or the idea of decentralization for that matter and therefore is depicting this negative attitude towards the crypto market. As it believes, the country is being faced with all these environmental changes or challenges due to all the mining which took place earlier here. These are just lame excuses to ban decentralization, blockchain technology, and cryptocurrencies for good and nothing else.