In addition of other comments about Chinese economic control.

There is plenty of regulation for bartering in most countries. Like for a house, you local IRS will have something to say if you exchange your house and dodge taxes like that.

Taxes is the key issue in our economies.

>Any kind of barter is illegal?

Don't know the situation in China, but that already holds for some countries.

E.g in my country, any transaction over a certain amount of money (not very big), has to be done through a bank to be legal.

Currency and barter transactions are very different things. Currency transactions are based on credit, barter transactions are based on trading commodities without any intermediary.

You can't reason with the guys with the guns.

China has a pseudo-controlled economic system. Coupled with the reality that most Bitcoin transactions are traceable, this law effectively kills Bitcoin as a viable currency in China — for now.

Well, effectively, it means that banks are disallowed from treating it like a currency. So, you could still trade a house for bitcoins, just as you could eggs, in theory, but what you can't do (again, same as eggs) is go to the bank to take out a loan in bitcoin to buy the house.

You also can't make payments on a loan with bitcoin, store bitcoin in the bank or expect to accumulate interest (by the bank, disregarding proof-of-stake-type currencies), etc.