Bitcoin has become the most popular cryptocurrency in the world. Some countries allow Bitcoin transactions, but some countries prohibit it. Our country belongs to the latter. Why did China shut down Bitcoin trading? Let’s analyze this issue today.

On the evening of September 14 last year, Bitcoin China announced that it would stop all transactions on the digital asset trading platform at the end of this month. On the evening of the 15th, Huobi and OKcoin successively issued announcements stating that registration and RMB recharge services would be suspended from now on, and all users would be notified before September 30 of the imminent cessation of transactions. At this point, all three major domestic Bitcoin trading platforms have announced that they will put an end to their trading business.

Many people don’t understand why China shut down Bitcoin trading? First of all, Bitcoin does not have the credit foundation to become a reliable currency. Other digital tokens can be created arbitrarily by imitating Bitcoin, which will disrupt the monetary system, affect the actual effective currency supply, and interfere with the government's intervention in the economy through monetary means.

Second, the current rapid rise in the price of Bitcoin has formed speculative expectations. If not stopped in advance, it will eventually form a bubble, causing huge losses to some investors and financial institutions, and damaging the financial system. of stability.

Bitcoin currently does not function as a medium of exchange in China, so it cannot be called a currency. At the same time, Bitcoin has the function of storing value and has certain investment value. However, the current rapid rise in prices has formed speculative expectations, and bubbles may form in the future. Therefore, it is necessary to take measures in advance, which can also inhibit some people from using Bitcoin. Conduct illegal activities such as money laundering and asset transfer.