### **📌 Key Points of China's Latest Ban**
1. **Complete Ban on Private Ownership of Cryptocurrencies**
- China expands the existing ban, **prohibiting all cryptocurrencies (including Bitcoin and altcoins) from private ownership, trading, and mining**, with violators facing criminal liability.
2. **Market Crash**
- Bitcoin plummeted **5%+**, falling below the **$105,488** key support level.
- Major coins followed:
- $SOL (-5.75%)
- $BTC (-6.10%)
- $ETH (-4.96%)
- Over **$99 million** liquidated in 24 hours.
3. **Accelerated Promotion of Digital Renminbi (e-CNY)**
- The ban aims to promote the national digital currency **Digital Renminbi**, strengthening government control over the currency system.
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### **📉 Reasons for Market Panic**
- **Historical Sensitivity**: China has previously triggered a 40-50% drop in Bitcoin during the bans in 2017 (exchange ban) and 2021 (mining ban).
- **Concerns Over Capital Flight**: Between 2019-2020, over **$50 billion** flowed out of China via cryptocurrencies, circumventing strict foreign exchange limits of $50,000/year.
- **Unverified Rumors**: Internal news from Binance suggests that the Chinese government may confiscate **194,000 BTC (worth $20.6 billion)**, exacerbating the sell-off.
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### **🕵️ China's 'Crypto Paradox'**
Despite continuous crackdowns since 2017:
- **Chinese still dominate the crypto industry**: Key firms like Binance (Changpeng Zhao), Tron (Justin Sun), and Bitmain were all founded by Chinese.
- **Miners Going Underground**: China still accounts for **55%** of global Bitcoin hash rate (through overseas entities or hidden mining farms).
- **USDT as a Tool for Capital Flight**: Tether (USDT) has become a mainstream channel to evade regulation.
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### **📜 Timeline of China's Cryptocurrency Ban**
| Year | Policy Content | Market Impact |
|------------|-----------------------------------|-----------------------------|
| **2017** | Ban on ICOs and exchanges | Bitcoin dropped 40% |
| **2021** | Ban on mining and trading | Bitcoin hash rate halved |
| **May 2025**| Criminalization of private holding | Bitcoin dropped to $105,000 |
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