China has excluded cryptocurrency from all transaction options, and this fact had a serious impact in the bitcoin value, as well as on the value of other digital currencies.
Though, how long China will resist?
There are some rumours that China will return to cryptocurrency within several months, though this time with proper licencing and anti-money laundering regulation.
The reason why China rejected cryptocurrency was that this field is very actively used for frauds and scams. Bitcoin was especially vulnerable, as this cryptocurrency is among the most expensive ones and definitely the most popular one.
Previous month Chinese government and national bank imposed a ban on cryptocurrency, that is why bitcoin price fell to 3000 USD. It influenced other digital currencies as well. After that, cryptocurrency market was restructured with focus on Japan and South Korea. After Japanese government officially regularized and accepted 11 digital currencies, Chinese government could change their mind as well. Moreover, that raised other concerns in Chinese government: as long as China isn’t participating in cryptocurrency trading operations, the country cannot control bitcoin and other digital currencies, while traders still can trade Chinese currency, but on other platforms, which are not regulated by Chinese government yet.
Hence, there are serious reasons for China to reconsider its decision about the ban, and this may happen very soon.