China is a juggernaut in the global economy whose large and developed population makes it an upper-middle-income country. The use of manufacturing and the availability of cheap labor catapulted the country into becoming one of the economic powerhouses. As the emergence of crypto spread around the globe, China rose to prominence as the hub of the world’s crypto activity. The first crypto exchange launched in China was BTC China in 2011. Since then, many Chinese have joined the bandwagon. This pro-crypto population spurred significant global growth, with many other cryptos launching after bitcoins’ success. While the prospects for crypto users in China seemed brighter than ever, this outlook was short-lived. A reversal in the state of affairs of crypto occurred following changes in the sector. These changes are discussed below. Government Intervention The period between 2010 and 2020 was the most favorable for both the users and cryptocurrencies in China. At the time, the country became the global leader in adopting, mining, and using bitcoin. In early 2013, corporations such as Baidu started accepting bitcoin payments. By 2020, China accounted for nearly two-thirds of global mining activity. However, due to government interventions, this activity dwindled. The interventions are as follows: Government Crackdowns and Regulation In 2021, China turned the tables on the crypto community by introducing regulations and cracking down o...
