China's latest ban on all crypto activities is a continuation of a long-standing policy to control its financial system. This move is driven by a desire to prevent capital flight, maintain economic stability, and eliminate competition for its state-backed digital currency, the digital yuan.
Historically, such bans have led to short-term market volatility but have ultimately strengthened the crypto network's decentralization. The previous ban on mining, for example, forced miners to relocate, making the network more resilient. This new ban will likely push crypto activities further underground in China and reinforce the global divide between countries that embrace crypto and those that restrict it
