Regulation
The cryptocurrency community is abuzz with rumors of China lifting its cryptocurrency ban
Cryptocurrency market participants are buzzing about the potential lifting of China’s Bitcoin ban. With significant progress in Hong Kong and other developments, speculation is growing that China may be softening its stance on digital assets.
If China loosens restrictions, the global cryptocurrency market could see major changes, making this a pivotal moment for digital assets around the world.
What’s driving speculation about China lifting its cryptocurrency ban?
voices Rumors are circulating within the cryptocurrency community that the Chinese government may reconsider its ban on Bitcoin and cryptocurrencies by the fourth quarter of 2024. These speculations have gained traction on social media, particularly on X (formerly Twitter), where notable figures such as Mike Novogratz, CEO of Galaxy Digital, have expressed their curiosity.
“If it’s true, and this is the second time I’ve heard it in weeks, it’s huge. Anyone have any ideas?” Novogratz questioned.
To know more: Cryptocurrency Regulation: What Are the Pros and Cons?
One of the significant developments fueling these rumors is Justin Sun’s recent legal victory. In June, the founder of TRON Network won a defamation case in the People’s Court of China.
The court ruled in his favor against Chongqing Business Media Group, which had accused him of various illegal activities. Some have interpreted Sun’s legal success as a sign of potential changes in China’s regulatory approach to cryptocurrencies.
Adding to the speculation is the move from a cryptocurrency exchange Bybit has announced plans to allow Chinese expats to open accounts and trade in June. This move is aimed at meeting the growing demand for secure and easy-to-use cryptocurrency trading solutions among the Chinese diaspora.
Reports suggest that Bybit may have simplified the registration and verification processes for users in China. Some see this as a hint at a possible softening of the country’s stance on cryptocurrencies.
Bitcoin and Ethereum Spot Approval Exchange Traded Funds (ETFs) in Hong Kong this April has further fueled speculation. These ETFs are available in multiple currencies, including the U.S. dollar, Hong Kong dollar and renminbi. However, mainland China Chinese investors are still banned from investing in these ETFs.
Underground Markets and High Volumes: The Hidden Cryptocurrency Scene in China
Hong Kong’s Efforts to Become a Crypto Hub and its unique relationship with China hint at a possible loosening of the country’s crypto restrictions. Industry leaders in particular have praised Hong Kong for its clear regulations, suggesting a brighter future for digital assets in the region.
China began restricting cryptocurrency trading in 2017, banning banks and payment systems from handling digital assets. In May 2021, the People’s Bank of China (PBOC) declared all transactions involving Bitcoin and other cryptocurrencies illegal.
This complete ban included mining, storage and use of cryptocurrencies. The reasons cited for this were capital controls, financial stability and the promotion of the digital yuan.
Despite these measures, mainland Chinese citizens have found ways to access cryptocurrencies. Reports indicate that some investors are using an underground network of brokers to obtain cryptocurrencies. Meanwhile, others are trading directly in public places, exchanging crypto wallet addresses and completing transactions via cash or bank transfers.
To know more: Why are Hong Kong spot cryptocurrency ETFs important?
Value of cryptocurrencies received between East Asian countries. Source: Catenalysis
A Chainalysis report revealed that between July 2022 and June 2023, the value of cryptocurrency received in China reached $86.4 million. The report also highlighted that transaction volumes on centralized platforms and decentralized exchanges in China accounted for 73.5% and 20.5% of the global averages, respectively. These figures reinforce the narrative that the lifting of the cryptocurrency ban in China could have a significant impact on the broader market.
Disclaimer
In compliance with the Trust Project guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on this content. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.