The government of China does not intend to lift the ban on cryptocurrency trading and mining, introduced in September 2021.
Virtual currencies do not have the same legal status as fiat currencies; they are not considered legal means of payment and cannot be used as currency on the market. The central bank will severely punish illegal activities involving the use of digital assets, as stated in the press release of the People's Bank of China.
The KHP has turned to cryptocurrencies due to high speculative activity inherent in the virtual currency market, which has a high level of volatility. Stablecoins have been banned by officials because they are used for: Money laundering; Implementing fraudulent investment schemes; Carrying out illegal cross-border transfers; Paying for illegal goods and services. China has banned virtual currencies, seeing them as a threat to the country's financial security, however, law enforcement agencies have not managed to put an end to the mining of digital assets. This is evidenced by the fact that the share of KHP in the hashrate of the Bitcoin blockchain has increased to 21.11%, and in this indicator, Podnebesnaya surpasses the Russian Federation, where cryptocurrency can be mined. Currently, Russians control only 4.66% of the computing power of the BTC network.
