Is Bitcoin Allowed In China?

Can I use Bitcoin in China?

Regulation prohibits financial firms holding or trading cryptocurrencies.

On 5 December 2013, People’s Bank of China (PBOC) made its first step in regulating bitcoin by prohibiting financial institutions from handling bitcoin transactions.

Many bitcoin mining operations in China had stopped operating by January 2018..

Interestingly, it is not illegal to hold Bitcoins and other cryptocurrencies or even to buy or sell them in China. The Chinese government also encourages the development and application of blockchain technology, but made it clear that blockchain technology must service the real economy.

Which countries have banned Bitcoin?

Some (Algeria, Bolivia, Morocco, Nepal, Pakistan, and Vietnam) ban any and all activities involving cryptocurrencies.

Why is Bitcoin banned in China?

The recent announcement effectively puts a ban on the use of cryptocurrencies in China, and comes as the People’s Bank of China is seeing increasing turnover in overseas transactions leading to regulatory compliance evasion. (See also: China To Crack Down On International Cryptocurrency Trading By Its Citizens.)

As of February 2020, Bitcoin was legal in the U.S., Japan, the U.K., and most other developed countries. In general, it is necessary to look at Bitcoin laws in specific countries. In the U.S., the IRS has taken an increasing interest in Bitcoin and issued guidelines for taxpayers.