China’s share in Bitcoin transactions declined 80% post crackdown: PBoC

People’s Bank of China (the central bank of China) claimed that China’s share of global Bitcoin (BTC transactions) has dropped rapidly from more than 90% to 10% in a recent note.

On Wednesday, the Financial Stability Bureau of China’s central bank published a detailed note discussing the effects of the crackdown on crypto markets. Official notice stated that all peer to peer exchanges in China had been eliminated, which ultimately curbed the hype surrounding digital currency transactions.

Google translated the note as:

“Globally, Bitcoin transactions in China fell rapidly from more than 90% down to 10%.” The government has taken severe measures to crack down on illegal financial activities, such as the disorderly handling and illegal fund-raising.

China is one of the few countries that has been steadfastly opposed to crypto use from the beginning. China’s first ban on Bitcoin transactions was in 2013.

The ban on cryptocurrency exchanges was implemented in 2017 and forced them to close their doors. Later, the country intensified its crypto crackdown efforts. In 2021, it conducted multiple regulatory operations to eliminate Bitcoin mining. By September 2021 all crypto transactions were illegal.

Related: Crypto miner claims that all major Yunnan operations were shut down ahead of the CCP anniversary

Statista data shows that the share of Bitcoin volume traded in digital yuan per annum has fallen to almost zero since 2018, following a ban on cryptocurrency trading.

Volume of BTC transactions: Chinese Yuan shares. Source: Statista

Although the trading volume of Bitcoin in the Chinese Yuan may have fallen to almost zero, it is impossible to ban because of its decentralized nature.

Many Chinese traders turned to VPNs after the 2017 ban on crypto exchanges within China. The Beijing government had banned foreign crypto exchanges from offering services in China. This led to anonymous trading by Chinese traders who turned to Decentralized Finance (DeFi) instead.