#USChinaTradeTalks Impact of Government Regulations on Cryptocurrency Traders in China

## Evolution of the Regulatory Framework

Regulations on cryptocurrencies in China have undergone significant evolution, creating a complex environment for traders:

- **2013-2016**: Period of relative freedom, with China emerging as a global leader in Bitcoin mining and trading

- **2017**: First major wave of restrictions with the ban on ICOs and closure of local exchanges

- **2021**: Tightening of policies with a total ban on mining and cryptocurrency transactions

- **2025 (current)**: Strict regulatory framework with ongoing monitoring of cryptocurrency-related activities

## Main Restrictions and Their Effects

### 1. Ban on Local Exchanges

- **Direct effect**: Closure of Chinese cryptocurrency exchange platforms

- **Adaptation**: Traders migrate to foreign platforms using VPNs

- **Consequence**: Increased difficulty in operating and additional compliance risks