We already know China's government has been ban initial offerings and bitcoin exchanges in since beginning of September this year.
At that time, all bitcoins exchanges in China have problems to continue this business. Some China's Bitcoins holder also divert all its assets to store in abroad exchanges.
Source from
https://cointelegraph.com/news/breaking-china-may-cut-off-cheap-power-to-bitcoin-minersThe statement regarding the cessation of cheap mining electricity indicates that the Sichuan Electric Power Company has issued a circular indicating that it will no longer provide the necessary power from its grid-connected hydropower stations. The circular suggests that Bitcoin mining is illegal operation. The circular has yet to be confirmed.
If this true will be applied then China's is serious to fight this Bitcoins business.
Yes, bitcoin is illegal in China, but i think there is also a problem of electricity resources, considering how big is that country and compared with the electricity necessity of population, there can implemented some new regulations. Thin at the water resources in California.
Few months ago chinesse government has never been favorable to bitcoin or digital currency in general, bitcoin miners in china were not able to sell their mined bitcoins as it was before. And now, they have finally decided to ban bitcoin mining.
Because the government found that bitcoin are not being taxed.