China recently flipped the cryptocurrency market upside down by announcing a regional cryptocurrency trading crackdown. After doing so, China is about to announce a cryptocurrency trading crackdown on the international level. Furthermore, as per the recent reports, China will make proper cryptocurrency regulations.
The government authorities in China are about to prohibit its population from trading cryptocurrencies by using an international exchange like coin base and balance. As a result, a cryptocurrency exchange that emerged from China has now moved to neighboring countries to continue its services.
No one is familiar with the exact revenue affected due to the cryptocurrency trading crackdown in China, but the effect is nominal. After the ban on regional cryptocurrency trading platforms, the citizens of china blazed the trail of using VPNs to trade from an exchange that serves globally.
VPN Stands for the virtual private network, and it allows the citizens of China to surpass the restrictions imposed by the government of China for cryptocurrency trading.
The leading countries in terms of cryptocurrency trading volume are Japan and South Korea. To know everything about cryptocurrency trading, check cryptosuccess.org.
Let’s find everything you should know about the cryptocurrency trading crackdown in China on the global level.
China is getting warmed up!
China is about to make some new rules for international cryptocurrency trading for the citizens of China. The rules are arriving after China cracked down on cryptocurrency trading and bitcoin mining on 18th May 2021.
As per the latest reports, citizens of China have turned to international cryptocurrency exchanges like Kraken and Coinbase after the crackdown in China. Undeniably, some risks are associated with such factors, but people continue to make money with trading.
China Still influences the cryptocurrency marketplace!
China has an enormous impact on the entire cryptocurrency marketplace. The trading volume of china is still highest in contrast to many other countries in terms of cryptocurrencies.
Moreover, China used to be the bitcoin mining hub. Despite the cryptocurrency mining ban in China, the country contributes more than 45% of the hash rate to the blockchain.
Two of the largest cryptocurrency mining pools are Ant Pool and BTC pool. Both of these mining pools emerged from China only. The giant ASIC manufacturer Bitmain owns both of these mining pools.
These two mining pools have formed more than 50% of the blocks on bitcoin’s blockchain in the past few months. In short, China is still dominating the cryptocurrency trading and cryptocurrency mining industry.
The cryptocurrency market has always reacted dramatically whenever a country announces strict cryptocurrency regulations. In the past few months, after the announcement of the cryptocurrency crackdown in China, the market has struggled a lot.
On 18th May, the higher authorities decided to clamp down on cryptocurrencies and private cryptocurrency mining. On 19th May, the market just suffered a prolonged slump.
The prolonged slump in the cryptocurrency market recently recovered, and on 10th November 2021, bitcoin again touched $68000. After the cryptocurrency trading crackdown in China on a global level, the market will again react very dramatically. However, with the market maturing, such factors should have a negligible impact on the cryptocurrency’s market value.
After the market crash, the cryptocurrency market lost more than 100 billion dollars in a single week. Profound cryptocurrencies like BTC and ether were trading at a market value of $30000 and $2200, respectively. The market is recovering slowly and steadily, but the factors that affect the market value of cryptocurrency are immense.
China never accepted cryptocurrencies very well but still is the most significant cryptocurrency hotspot. The majority of foreign cryptocurrency exchanges like Binance emerged from China only. Moreover, China hosts the maximum number of ASIC manufacturers, the most efficient cryptocurrency mining machine.
As per reports, the main reason for cracking down was cryptocurrency mining energy consumption. China contributes the maximum hash rate on the blockchain of almost every cryptocurrency.
Electricity is the primary source for performing these mining operations. In short, China announced a crackdown to lower energy consumption in China.
The portion mentioned above describes everything you should know about China’s forthcoming cryptocurrency ban.