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."
To be fair illegalities and crimes existed before crypto existed and it will not stop. Yes, crypto might provide yet another avenue but it also brings so many more benefits.
China is taking a harsh approach to crypto and it is possible that all this FUD is calculated and preparing the population for their own version of digital currency - it makes sense because it eliminates all direct competitors available in crypto and it would be interesting to see what stance they take on then.