Beijing desperately needs control, with its financial system now increasingly visible. Bitcoin, the world's largest digital currency, and other cryptocurrencies are untraceable by a country's central bank, making it difficult to regulate. Chinese authorities banned trading this month to "prevent and control financial risks".

Analysts say China is concerned about the proliferation of illicit investment and fundraising. China also has strict rules around capital outflows. "China has no open capital accounts and cryptocurrencies avoid this which is anathema to Chinese authorities," Jeffrey Halley, Asia Pacific analyst at Foreign Exchange trading firm Oanda, told AFP.

But the crypto crackdown has also opened the door for China to introduce its own digital currency, which is already in the works, allowing the central government to monitor transactions.

quoted : https://techxplore.com/news/2021-06-china-tough-crypto.html