China’s Ban on Cryptocurrencies

Introduction

Cryptocurrencies have become a must-have digital asset for some, with major investment banks such as Goldman Sachs asking their clients to diversify their assets. In a world of low-interest rates and negative-yielding debt, some institutional investors and retail investors have shifted to cryptocurrencies to shield their assets from low inflation.

In 2019, China was more benign on the use of cryptocurrencies and it did not explicitly prohibit consumers or businesses from trading cryptocurrencies such as Bitcoin, Litecoin, Ehtereum, and…