China’s Crypto Crackdown: A Timeline of Regulation and Innovation

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China has reinforced its sweeping ban on cryptocurrency activity, targeting offshore yuan-backed stablecoins and tightening restrictions on digital asset trading while continuing to push its state-controlled digital yuan strategy. China’s approach to blockchain and cryptocurrency has evolved into a dual-track strategy: aggressively supporting blockchain infrastructure and digital currency development while limiting speculative cryptocurrency activity. China was an early adopter of crypto, specifically in the sector of Bitcoin mining. The rapid adoption of Bitcoin mining in China in Bitcoin’s early days led to Chinese dominance of Bitcoin’s hashrate, with their share peaking between 60% and 75% during the 2017-2020 period. In…

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