Recently, I heard that China banned holding cryptocurrency and cryptocurrency transactions, so does that mean that having cryptocurrency in China would be a criminal offense? Moreover, why create such a ban in the first place?
As i know China does not ban cryptocurrencies. You can still buy, sell and trade them. However they are no longer allow cryptocurrencies mining companies in their country anymore because they cause problems with the electricity.
More controversial talks were happening with the usage of bitcoin in China. Already China has the alipay and other digital payment processors which is much preferred than the real cash. China hasn't restricted the usage with strict regulations as Bangladesh or other countries does. This paves the way for better usage of bitcoin based on the users self interest.