Due to the collapse of the Terra ecosystem, China's state-owned media source, the Economic Daily, has suggested that the Chinese government may impose even stricter rules on cryptocurrencies and stablecoins. The source revealed the collapse of TerraUSD (UST) and Luna (LUNA) in a story published on May 31, describing the algorithmic stablecoin's workings. It took advantage of the so-called "black swan" event to applaud China's move to ban bitcoin.
<blockquote><em>"My country has been cracking down on virtual currency trading speculation and many trading platforms," reporter Li Hualin wrote before adding, "this has effectively blocked the transmission of this risk in China and avoided investment risks to the greatest extent possible."</em></blockquote>
https://twitter.com/Cryptoacademysp/status/1531537789363404800

Since mid-2021, the Chinese government has been toughening its stance on cryptocurrency after banning crypto exchanges in 2017. Several government authorities have issued warnings about the dangers of investing in cryptocurrency, and there has been a massive crackdown on mining in the country.

Colin Wu, a China-based cryptocurrency reporter, clarified the ban, telling Cointelegraph that while regulations prohibit institutions from providing crypto services, they "do not bar regular people from utilizing cryptocurrencies, as there is no specific law against it."
<blockquote><em>"Institutions and enterprises are completely banned from trading or owning cryptocurrency in China, but individuals are free to own, buy, and sell. Some local courts even consider them legally protected as virtual property."</em></blockquote>
According to a Shanghai court, Bitcoin (BTC) is subject to property rights rules and regulations because its value, scarcity, and disability satisfy the criteria of virtual property. When it comes to how traders get their hands on cryptocurrency in the first place, Cointelegraph recently reported on the growing use of VPNs among Chinese traders. After the previous wave of limitations, traders began increasingly using offshore exchanges or peer-to-peer networks for all of their activity.

China's State Media Predicts Stricter Crypto Controls Aftermath of Terra

China's state-owned media source, the Economic Daily, has suggested that the Chinese government may impose even stricter rules on cryptocurrencies and stablecoins.

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China's State Media Predicts Stricter Crypto Controls Aftermath of Terra

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