[jaxytee]

Over the past couple of years, China has lost around a trillion dollars in foreign reserves (a 4 trillion dollar cash pile earned from exporting all those made in china goods) to capital flight. Whenever a Chinese citizen or business takes yuan and exchanges them for a foreign asset, China's fx cash pile is diminished. If china's "savings account" is bled dry, it would have to choice but to devalue and print its currency to handled some of it local fiscal issues.

To prevent "rocking the boat" with a currency devaluation before the Communist Party Meeting this fall, China has locked down it's capital account by blocking foreign company acquisitions, repatriation by multinational corporations (think blocking Apple's yuan accounts from withdrawals to USD), Toronto real estate purchases, etc.

Bitcoin was an unregulated and popular means of capital flight. It was just a matter of time before they cracked down on it as well.