China's market regulators and the Ministry of Public Security said cryptocurrency is "disrupting the economic and financial order, breeding illegal and criminal activities such as gambling, illegal fund-raising, fraud, pyramid schemes, and money laundering, and seriously endangering the safety of people's property."
Sounds more like: Cryptocurrencies are giving the citizens to exhibit some level of freedom and control over their finances as they should normally be able to do, but they can not because we want total control. Bitcoin challenges the control the state has over the citizens, checking the trail of governments which are hostile to cryptocurrencies, you will discover they are anti freedom and undemocratic.
How will this impact Bitcoin and other cryptoprojects?? What do you think guys?
If I can recall correctly, China experiences one of the largest emigration of wealthy people and businesses as most can not cope with the system of governance, same would likely happen here, i.e bitcoins moving out as we saw with mining gear, it would limit grassroot adoption, but would also redirect the Bitcoin enthusiasm to other parts.