According to a report published by Xinhua, China’s state-run official news agency, data from The People’s Bank of China (PBoC) shows evidence of the blanket ban on cryptocurrencies having a strong effect.
The data shows that China’s local currency, the Yuan (CNY) is trading less than 1 percent of the global total volume against Bitcoin (BTC).
The report reveals that the PBoC has ceased trading on 88 crypto exchanges and 85 initial coin offerings (ICO) platforms since September last year (2017) when the ban was put in place. It also notes that prior to the ban, Chinese Bitcoin trading accounted for over 90 percent of global volume. Independent reports released at the time showed similar data exhibiting how the market had collapsed.
The ban initially only applied to ICO’s and classified them as an illegal method of fundraising that disrupted economic and financial order. The restrictions were then expanded to include all cryptocurrency related activity and trading platforms. Following the ban, exchanges such as Huobi and Binance moved to other countries in order to continue operating.
Internet censorship has also been enacted in the country for many years and blocks access to over 100 websites related to cryptocurrency. However, it appears the majority of residents interested in cryptocurrencies use VPN’s to circumnavigate these blocks.
Further action by Chinese regulators working with local payment gateways has successfully disabled 3000 accounts associated with direct peer-to-peer trading.
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