Very interesting read, thank you. It's pretty obvious goverment has complete control over the cryptos cause if the exhanges are made illegal then bitcoin has no direct link to fiat and it's gone. That`s why I don't get why people think we are "free from the banks", even in the USA, if the banks found crypto their enemy they could shut it down in days...
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I'm sure people will continue to trade over the counter with cash. In China, it's really difficult because even sending large amounts to people domestically now requires application and investigation.