Yea I understand that, but the whole point of crypto-currencies is to be decentralized and to bypass those governments and central control. If you are not going to do that, and if you are not going to be decentralized, then what's the point? Why have a blockchain? You could just have a normal computer with a database. Right?
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Not disagreeing just saying that I have a feeling most cryptos in China will function like this. As a crypto it will be crap, but it could potentially be a good investment as it will get a lot of support from the crypto market in China.