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China is cracking down more on bitcoin. Florence Lo/Illustration/Reuters
Bitcoin fell as high as 8% Friday due to China's ban on cryptocurrency transactions.
The country has tried to control the digital asset sector for almost a decade.
Here is a timeline listing all of the Chinese regulatory actions that have been taken against cryptocurrencies.
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It was deja vu all over again for some cryptocurrency investors on Friday after China said it would ban all cryptocurrency-related transactions.
In a statement, the People's Bank of China stated that virtual currencies are not legal and should not be and cannot be used in the market. The news led to Bitcoin falling as high as 8% Friday, while other crypto coins such as ether, litecoin and Solana dropped nearly 10%.
China's anti-bitcoin stance is well known. In 2013, the country issued its first ban. China has attempted to restrain the booming digital asset market since then with different restrictions that target different parts of the market.
The most strenuous yet against cryptocurrency has been today's move. Despite all the bans, Beijing did not make it illegal for Chinese citizens, however, to keep their digital cryptocurrencies.
Here is a timeline listing all regulatory actions China has taken on cryptocurrency since 2013. Many of these occurred during a volatile rally for bitcoin and other altcoins.
December 2013: China bans banks handling bitcoin transactions
In a statement, the People's Bank of China stated that bitcoins were a "virtual goods" and should not be used as a currency. This ban was applied to all major financial institutions in the country, effectively making it the first ban against crypto. Many believe that the ban was imposed due to an increase in interest from Chinese citizens and a strong bull market in bitcoin.
September 2017: China orders local cryptocurrency trading platforms to stop operating
The country also banned initial coin offerings, and ordered all domestic cryptocurrency exchanges in the country to cease operations. This was in the midst of a strong bitcoin bull market that reached near $20,000 by late 2017.
May 2021: China bans payment and financial institutions from offering crypto services
It reiterated its previous bans in 2013 and 2017 citing the dangers associated with speculative trading of crypto coins. The ban was also imposed for all payment platforms and business activities that are related to cryptocurrency.
June 2021: China intensifies its crypto mining crackdown
The country decided to ban cryptocurrency mining and put in place regulations. The new rules allowed bitcoin mining to move overseas to more crypto-friendly countries like the US. China's new restrictions were prompted by environmental concerns and high energy consumption.
September 2021: China bans cryptocurrency-related transactions
The country made cryptocurrency-related transactions illegal and forbid overseas exchanges from serving its citizens. The People's Bank of China stated that coins such as bitcoin or ether were not legal and could not be used in the market. Although trading in cryptocurrencies is now prohibited, it is legal for citizens to own the asset.
