This is pretty much the whole story right here...
" NIFA official Li Lihui told a technology conference in Shanghai on Friday that a goal of Chinas monetary regulation is to ensure that the source and destination of every piece of money can be tracked. "
Bitcoin is the mortal enemy of '
tracking'. Therefore China is going to continue to assault Bitcoin from every angle. You can be sure of that.
Because they believe that BTC won't help them in any aspect of their economy. We all know how well China manage their people and their country. Plus, I've heard that they are in favor of ETH than BTC. BTC is indeed valuable but is unstable. Maybe China is just playing safe and does not want to be involved in such things. Anyhow, other BTC investors from China will always find a way to get through with it.