- Viral crypto ban rumor sparks widespread panic across online platforms.
- Experts confirm no new cryptocurrency restrictions from Chinese authorities.
- China’s mining activity continues despite past regulatory crackdowns.
Widespread panic swept through the cryptocurrency community on Sunday following claims that China had imposed yet another ban on crypto trading and mining. The unverified report originated from the official X account of Kalshi, a well-known prediction market platform, and was quickly echoed by First Squawk, a financial news outlet.
In a post that used all caps, Kalshi cited capital flight and environmentalism as issues that led to the alleged ban. The post received close to 800,000 views and left many confused in the world of crypto. The news caused a ripple of panic as people feared that the government in Beijing would again exert pressure to regulate their businesses.
However, industry experts quickly dismissed the claims as baseless. Su Zhu, founder of the collapsed hedge fund Three Arrows Capital, dismissed the report as having zero evidence. He proved this through his sources of information in China.
There was also a rumor that Colin Wu, a Chinese crypto commentator, denied it. There is an official answer to the point that the Chinese government announced nothing new about some new limits. Yu noted that China has never once declared people who transact with cryptocurrencies illegal.
Rumor Reflects Continued Misunderstanding of China’s Crypto Crackdowns
China’s crypto policies have long caused confusion, mostly due to repeated actions over the past decade. In 2013, the People’s Bank of China prohibited financial companies from transacting in Bitcoin. Towards the end of 2017, China banned initial coin offerings and closed alternative exchanges.
The latest and greatest crackdown was in 2021, when the government attempted to target Bitcoin mining because of its energy use and financial risk. Nonetheless, Wu wrote that mining still exists in certain regions of China, and in particular, China still comprises about 21 percent of the world’s Bitcoin hashrate.
In the meantime, Chinese authorities have expressed more concern about stablecoins and real-world asset tokens, which indicates a more sophisticated attitude to digital finance.
There has still been no official declaration or policy change published regarding any additional restrictions. Critics are concerned that claims of this sort based on viral folklore will lead to irrelevant panic without factual support.
The latest rumor of a renewed crypto ban in China appears unfounded. Experts advise users to remain cautious and rely on verified information.
Also Read: Experts Say XRP Is the ‘Smartest Crypto’ for a $500 Investment-But There’s a Catch
