How China's Stifling Bitcoin and Cryptocurrencies: QuickTake

China, home to the world’s biggest community of Bitcoin miners, is cracking down on cryptocurrency activity. From a halt to virtual currency trading on domestic exchanges to banning initial coin offerings, regulators have taken a proactive role in shaping the stratospheric rise of Bitcoin and its peers. The country’s moves come as President Xi Jinping targets financial risk in the economy following a decade of booms and busts in everything from stocks to real estate. The result: China’s once-dominant role in the world of cryptocurrencies is shrinking.

First it banned initial coin offerings, or ICOs -- the equivalent of initial public offerings for new virtual currencies. Then it called on local exchanges to stop trading in cryptocurrencies and outlined proposals to discourage bitcoin mining -- the energy-intensive computing process that makes transactions with the digital currency possible. It’s also moved to stop Chinese companies listed abroad skirting its domestic ban on ICOs. Officials now intend to block domestic access to online platforms and mobile apps that offer exchange-like services for cryptocurrencies. They’re also targeting platforms that allow investors to trade digital assets on overseas exchanges. Domestic stock exchanges, meanwhile, are scrutinizing companies that promote themselves as blockchain-related to boost their shares. It’s part of a concerted effort by agencies including the central bank, the cyberspace administration and China’s Ministry of Industry and Information Technology.