Based on China's recent isolationist policies like banning Chinese companies from listing shares on foreign financial markets, this move to illegalize cryptocurrencies comes as no surprise. However, ultimately, this action will only serve to hurt China in the long run, since at this point the technology is out there, cryptocurrencies are here to stay, and there is no turning back. The decentralization and and disintermediation of finance has begun and by China essentially bowing out, they will be left behind as the technology continues to develop within the other leading countries of the world.
Cryptocurrencies are a $2T market, and with that amount of money and interest behind it, even China can't stop it. Bitcoin and other major cryptocurrencies have already rebounded from the news. I look forward to the future of cryptocurrencies, and it's unfortunate that for the time being, the people of China won't be able to participate in their growth.