My taught On the Chinese people? It will make cryptocurrencies like Bitcoin illegal. Anyone who uses crypto becomes a criminal. I don't actually think their laws will get rid of crypto. Instead, people who don't like being under the harsh thumb of the CCP will utilize privacy cryptos like Monero. I won't be surprised if new internet and cryptocurrency privacy is developed because of the Chinese. There is now a market of potentially 1 billion people who want internet and monetary secrecy. Even if only 1 percent of the Chinese people want/need privacy crypto and internet that's a market of 10 million users! The CCP has planted the seeds of the rebellion that will throw them out of power and they don't even know it.
I do not know how things are with law and law in China, but in my state no one would pay attention to the decision of the central bank to ban the circulation of cryptocurrency. The central bank can give instructions to subordinate banks on issues related to its competence, but not to citizens, if this is not directly related to the activities of banks. In order to prohibit the circulation of cryptocurrency, an appropriate law or at least a by-law at the government level is needed.
Criminal liability is incurred only for acts directly indicated in the Criminal Code as crimes. In order to amend the existing criminal code, a decision of the country's legislative body is needed. Therefore, it is completely incomprehensible to me that the central bank of China threatens with criminal liability, or it is already interpreted in this way by other persons, because we have not seen a direct order from this bank.