Having in possession of bitcoin will get you in jail is ridiculous. 
But knowing chinese government, it will not be impsossible. Completely stating that bitcoin use is illegal will surely help bitcoin decline its value but it won't completely kill it.
But knowing chinese government, it will not be impsossible. Completely stating that bitcoin use is illegal will surely help bitcoin decline its value but it won't completely kill it.
Yes, it will not completely be killed and I am sure china have plans how they will manipulate it and how they will get good profit from regulating the use of bitcoin.