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After the launching of bitcoin in 2008 by Satoshi Nakamoto, it became a popular globally accepted cryptocurrency. Many people started using bitcoin as the primary mode of exchange. As bitcoin becomes popular, some people use it for their usefulness in legal activities, and some people start using it for illegal activities such as buying and selling drugs and other stuff that are banned or illegal. Bitcoin is a decentralized system that means no one can control bitcoin, such as the government, banks, financial institutions, and even the founder of bitcoin, Satoshi Nakamoto.

It is the main reason bitcoin is banned in some countries because the nations do not want to allow citizens to use the currency out of control. It is forbidden in some countries, but is bitcoin banned or illegal in China? So, in this article, we will discuss regulations of the Chinese government regarding bitcoin. So, without wasting time, let’s understand if it is a ban or legal or not?

Bitcoin is still in China:

The government of China indeed has strict regulations regarding bitcoin usage such as trading, investing, or other uses. Bitcoin was banned many times in China by the Chinese government. There are a lot of reasons to ban bitcoin in China. The first thing is that bitcoin is uncontrollable. That means the government cannot trace the bitcoin transactions, and many people start illegal activities. There are no more features or benefits of bitcoin in China than the fiat currency of The Team at Yuan Pay. The Chinese government has complex regulations to use the Yuan instead of using digital currency or bitcoin.

Many people use bitcoin for exchange or for buying and selling. But it is also true that you can still use bitcoin in China. Read the following heading to understand clearly:

Peer-to-peer trading:

You can only buy and sell bitcoin through peer-to-peer exchanges. The regulations will not allow Chinese citizens to use trading platforms, but you can buy and sell bitcoin through peer-to-peer networks. Peer to peer network means finding the bitcoin seller or buyer in the local area, and there is no third party involved in it. There are some websites or platforms that provide the peer-to-peer service like LocalBitcoins.

On this website, if you want to sell bitcoin, you can find the buyer who wants to purchase bitcoin, and after negotiating, you can contract with the buyer and transfer the bitcoin to his account in exchange for fiat currency. For example, if you have one bitcoin and want to share it with someone else for fiat currency, but it isn’t easy to find because you cannot use the exchange, you will go to the LocalBitcoins website to see the seller who wants to buy one bitcoin. You can contact that buyer, and after deciding the price for the bitcoin, you can send him the bitcoin for the contract price.

Exchanges are Banned:

Bitcoin exchanges are banned in China. Bitcoin exchanges are third parties that provide extra services and security to bitcoin users for some fees. These exchanges charge some fees to give some additional features that blockchain is not providing. As we read, China has already banned third-party service providers. If you are a Chinese citizen, then you cannot invest in bitcoin or trade bitcoin. In addition, you cannot earn money through bitcoin trading or investing.

Is there any bitcoin ATM in China?

No, there are no bitcoin ATMs in china. Bitcoin ATMs do not mean that you can only withdraw money by just selling bitcoin. You can do a lot of things through bitcoin ATMs. You can trade bitcoins, sell bitcoins, buy bitcoin through fiat currency, and many more things. So, bitcoin ATMs are also banned in China, and there is not any bitcoin ATM.

People left:

Some Chinese citizens left China just for bitcoin mining, trading, or investing. You cannot mine bitcoins in China, and people who mine bitcoin left China and shifted to the US, Canada just for mining. Mining is a process of validating bitcoin transactions. Miners with proper mathematical knowledge and programming knowledge get 6.25 BTC to solve a bitcoin block or set of bitcoin transactions.

Conclusion:

So bitcoin is banned in China but not entirely. Bitcoin exchanges, Bitcoin ATMs, and bitcoin mining are banned in China. Still, if you want to use bitcoin, you can go with peer-to-peer interactions, which means there are no third parties involved, depending on the negotiation. Some people left China to mine bitcoins because the reward is high (6.25 BTC).

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Jakaria Farhan

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