That can't be happening for every country. China is ruled by a communist government like North Korea so they are just trying to discourage people from using any external source of income. They want their citizens to remain dependent on their government instead of being self-sufficient. That is not the case worldwide.

There are countries like Holland and Japan who have legalized bitcoin for greater use. Japan has recently awarded a license to a crypto currency exchange known as CoinCheck. So the case of bitcoin is not gloomy as it seems.