China’s central bank views decentralized currency as a threat to the state’s economy and views it as an incentive to use it for illegal purposes. To combat the increasing popularity of cryptocurrency, China has done two things. Various Chinese provinces, including the two top crypto mining provinces, have shut down the power allotted to crypto mining businesses, resulting in the suspension of activity and relocation of these businesses. In addition, China has started to develop its own E-currency based on its standard currency, the yuan, to ensure the e-currency used in the state still has a centralized backing. Furthermore, the government has forced multiple large state-owned banks to “block payment services for any client accounts thought to be involved in cryptocurrency transactions. They were also told to cease offering other services such as account opening, registration and trading for any cryptocurrency-related activities.”

The relocation of crypto...