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China Bans Crypto Transactions - A Violation of Human Rights

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Avatar for Pantera
Written by   655
3 weeks ago

China is now calling illegal all cryptocurrency transactions. Until recently, all Chinese civilians could hold cryptocurrencies, but the ban has slowly and strategically expanded, from exchanges to mining and now to transacting.

We may think this is not possible in a Western country, but a government can easily force a ban with no major opposition. The public still doesn’t use cryptocurrencies, and it is not a widely adopted method of value exchange.

What we have today is not an adoption of cryptocurrencies, but investors in Robinhood, gambling their extra money. A government will have it easy to just ban. Although, the problem now is not the users but the millions of European and American investors.

And since it is 99% investors looking for profit, regulations are applied, just for the taxing purposes. The China example can be easily applied any time it fits a new government narrative of "protecting" the public and the economy.

The 2011 Online Gambling Ban (The Black Friday)

Michael Saylor, in 2013. Source: Twitter

Since 2013 and the “gamblification” of Bitcoin by MtGox exchange, there was one enormous concern, a blanket ban by the US and EU governments.

The collapse of MtGox probably helped cryptocurrencies, since there was no interest until perhaps 2016 again. No interest and a market having thin volumes weren’t important for regulations, so they only looked at crypto again by the end of 2017. The US taxed crypto, and probably this marked the end of that parabolic bull run.

Source

In April 2011, the US government announced online gambling was illegal and seized the Full Tilt Poker website after federal agents discovered many irregularities, making the online poker room resemble a Ponzi Scheme.

Online poker, together with live events like WSOP, was on the rise for many years, having reached high numbers of players, viewers, and extreme volumes. Everyone wanted some action, and it was Pokerstars, Full Tilt Poker, and various other poker rooms offering it.

It became a concern for authorities once far too many youngsters were abandoning their studies or work, trying to follow the “Tom Dwan” dream. The problem with poker is that 90% of poker players will eventually bust. A 5% will be in a middle position not losing or profiting much, and another 5% will be at the top of this pyramid, making extreme returns and become the attraction of the game.

Online gambling today is banned or regulated strictly in most regions of the world. But I will not analyze online gambling too much, perhaps in another article, since I have already wasted thousand of hours researching online poker and studying how these websites work.

Crypto Trading Today

Source

Crypto is today what poker was back in 2011. Ten years after the “Black Friday” events, crypto seems to be about 100 times what online poker was in 2011.

The volumes in unregulated derivative trading exchanges have grown so much that the US, UK, and a few other countries have barred Binance, Bitmex, and more from offering services to their citizens.

A veil of investment covers any kind of absurdity with dog tokens like Shiba Inu to projects that claim that will create a working platform in the future, yet this is enough to reach 100 billion in valuation.

If any kind of business or project has the same extreme marketing team as Cardano has, it can also have blockchain-based flying cars for its concept. After enough brainwashing, anything is possible.

It doesn’t need a lot for any government to act immediately by putting a blanket ban on all cryptocurrencies, as long as one similar event takes place. I think that once something similar to the size of Plus Token appears in the US or the EU, there will be similar action.

China had various Ponzi schemes, money laundering, and other scams as an excuse.

"widespread, disrupting economic and financial order, giving rise to money laundering, illegal fund-raising, fraud, pyramid schemes and other illegal and criminal activities."

-Source

It is not about protecting the public, though. China only cares to control and tax the flow of money. There is a rise in financial fraud and crimes in China, but China is also experiencing the same rise in financial fraud, every booming economy does. It is not about Crypto, this is just irrelevant and misdirecting from the real issues.

The Chinese government desires complete control of all financial aspects of its economy and plans to do that with the Digital Yuan. The CBDC.

What China, the US, and the EU want is control. This is the CBDC.

All of the talk about protecting the public and the economy are mere excuses. A government will only intervene when there is enough cause for concern. The concern is hardly about the population, but about the strength, stability, and continued influence of the government over the population.

Do people want digital money? The governments will create a CBDC and force the use of it.

Do people demand cryptocurrencies to be accepted? The government will create a KYC-compliant centralized wallet under its strict supervision. Maybe Chivo will become the standard of government-controlled BTC since we see today such high rates of acceptance by the BTC community.

In Conclusion

If people are outraged, the government will feel vulnerable, so by any means, it will try to calm the public and deter disobedience. Finally, it will ban the use of anything it doesn’t control, and even threaten with fines, violence, and capital punishment if needed for the disobedient.

Capital punishment in the West (besides the US) is forbidden, but it is equally disturbing to know we will be considered criminals if we transact using cryptocurrencies. Maybe we have taken this event in China too lightly.

A ban on cryptocurrencies severely violates the human right to interact and transact with others.

Not even going to describe all the recent events with Covid and how this virus is now a tool for the re-creation of policies coming from previous centuries that led to extreme human rights violations and an increase in governmental power and control over all aspects of societies.

There is a good number of cryptocurrencies today that can be considered decentralized, with miners around the world using ASICs, GPUs, and other devices. These networks can't be stopped in a sense. There is no on/off switch but any kind of ban will make the asset class less appealing to institutions and wealthy investors.

But not to the public. Even as illegal, crypto can keep rising, especially with the most recent DeFi developments.

A ban in the West may not come, but the governments have sought and are now ready to force a mandate for their crypto policy. It will be "Chivo" or nothing.

KYC compliant wallets with custodial mechanisms.

Not exactly the same Chivo wallet of El Salvador, but a similar one. To tell you the truth, it is better to realize the IMF is not against El Salvador in this. It enjoys watching a real-life test application of a custodial digital currency in a Central American economy.

Images:

Lead Image from: Pexels


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3 weeks ago
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Comments

China is the only major country that has decided to outlaw cryptocurrencies, and let me remind you that they have also banned Google, Instagram, Yahoo, Facebook, and anything else that doesn’t agree with their communistic idea. So it’s quite typical and expected for China to ban something that gives freedom to the individual, especially cryptocurrencies.

$ 0.00
1 week ago

What's your opinion on El Salvador and the Chivo wallet?

$ 0.00
1 week ago

I want to be friends with you

$ 0.00
1 week ago

Students are leaving studies or work might be the reason but the main reason is what you mentioned that China wanted to control the economy and tax system.

$ 0.01
3 weeks ago

October 1st, the government of my country will be launching her own digital currency. Currently there is a ban on bank accepting crypto transactions. I fear the introduction of this digital currency will further add to the total eradication of cryptocurrency in the country. They want power ,they want to control which cryptocurrency isn't giving them

$ 0.00
3 weeks ago

I found this article quite interesting.

https://arstechnica.com/tech-policy/2021/09/bitcoin-outlawed-in-china-as-country-bans-all-cryptocurrency-transactions/

I think this is a more reasonable explanation as to what's going on than the emotional "China dictatorship killing people's rights".

TLDR: Basically China is banning anything that takes money out of the country because money in the country can be used by Chinese economy to lessen the impact of a real estate crash similar to that that took down America in 2008.

$ 0.10
3 weeks ago

Yes, I am expecting a Chinese PR campaign to excuse the most recent violation of financial rights. It sad, though, that some in the west support an authoritarian government. Probably because they don't know a lot about its history in human rights violation they find these events unimportant. China has been banning crypto since 2009 it is not something that just started today.

$ 0.00
3 weeks ago

Yeah but China isn't going to be the only one. America will follow and so will European countries. I don't think it's fair to rail on China when America and Europe have also trampled on people's rights in the past. Hell, even here in New Zealand we've had it and I'm not just talking about COVID lockdowns.

$ 0.00
3 weeks ago

I don't think you have read the article. I state that the western governments will do just the same in case it serves them better.

$ 0.00
3 weeks ago

No I did read it. I agree in principle with it. I just feel many articles I've read have only looked at China through the eyes of its dictatorship. Governments will try anything to retain power but at the same time governments losing power will threaten the people MORE. The greatest control a government has is the economy and thus it makes sense for them to protect that in any way they can.

If the government releases their own cryptocurrency - and they will - it's to ensure that control. But it also protects the people. As you say, cryptocurrencies as they stand do little to protect people. China understands this just like they understand that allowing property speculators to continue will threaten their economy just like they did the American economy in 2008.

Do I necessarily agree with them? Not really, but at the same time I feel the current cryptocurrency climate is not safe and will bust itself without proper legal controls.

It's going to be an interesting next couple of years for cryptos.

$ 0.10
3 weeks ago

Online gambling is still popular in parts of Asia. I know of a man who makes a very good living doing so. But yes, crypto bans are inevitable. China sucks. But western governments are becoming increasingly tyrannical and trust in government is at an all time low (and rightly so).

$ 0.00
3 weeks ago

China wanted to take the lead in everything, they started this war against cryptocurrency strategically all to give the digital Yuan a strong footing and to be the first nation to use a digital currency.

Nigeria my country banned banks from dealing with crypto exchanges six months ago and now they are launching a digital currency next month. I know the reason is to have full control of the crypto market in the country and they will force us to use the e-naira or face penalty.

$ 0.05
3 weeks ago

It is how money should not be though. We shouldn't need permission from the State to use our money. They can't control any part of crypto this is why there are these bans.

$ 0.00
3 weeks ago

They really want to take the lead. They play the game well.. they always have the alas at hand.. and trying to control everything they can.. so sad

$ 0.00
3 weeks ago

I recon that they're getting pretty serious now. Perphaps they're going to launch their own token soon

$ 0.00
3 weeks ago

Yes, they are expanding the digital yuan CBDC. This is the plan and in a few years it will become the most used method.

$ 0.00
3 weeks ago

It pains to the heart to see how the government deprives the citizens of the country their human rights.

Cryptocurrency also got banned in my country Nigeria. But that doesn’t mean there is a total stop to it. We just have to find a solution.

Chins of all countries m. When I hear about their ban I wasn’t surprised because they’ve been that way for long

$ 0.00
3 weeks ago

I think there should be a policy that will restrict government from banning cryptocurrency, because China today which country is next. Same policy with China my nation sometimes last year

$ 0.00
3 weeks ago

Hopefully the leaders in my country don't end up banning crypto as well. I would really despise them if that happens!

$ 0.00
3 weeks ago

Yes it's violation of human right but maybe not entirely true because China have their reason for banning cryptocurrency. Nice write up through. You revealed alot to us.

$ 0.00
3 weeks ago

It’s not the first human rights violation they have committed!

$ 0.01
3 weeks ago

Certainly not! It has the worst record of respecting the individual. And it seems that the rest are now taking lessons and copying.

$ 0.00
3 weeks ago

I cant believe they did this, why is it that the government fear crypto, is it because they cant control it? Must they control before they accept it, it is sad to see the igorance of people cause the fall of crypto, I pray one day they realise this and accept crypto like the currency it is. The currency of the people!!

$ 0.01
3 weeks ago

Correct. It is exactly because they don't have any kind of control on cryptocurrencies. So they won't have any control over the people.

$ 0.00
3 weeks ago