As in some many cutting-edge sectors, China’s relationship with cryptocurrencies is defined by the competing forces of innovation and regulation.
In 2017, the Chinese government was the largest cryptocurrency market in the world. It is estimated that as many as 80 percent of all Bitcoin transactions were taking place in Chinese currency, the yuan (also known as the renminbi), at that time. Cryptocurrency exchanges in China were busy and proliferating. The availability of cheap electricity, particularly in regions like Sichuan, made Bitcoin mining a lucrative business.
However, at the height of what seemed like an unqualified success for China’s adoption and use of digital currencies, on September 17, 2017, Coindesk reported that a document leaked on social media “appeared to confirm rumors that all local Bitcoin exchanges must close by the end of the month.”
Indeed, that’s exactly what happened. With no public consultation, no advance notice, and no appeal mechanism, the Chinese government shuttered an international fina
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