Markets
Crypto Community Agitated by Rumors of China Lifting Crypto Ban
Crypto market participants are buzzing about the potential lifting of China’s Bitcoin ban. With significant progress in Hong Kong and other developments, speculation is rife that China may soften its stance on digital assets.
If China eases its restrictions, the global cryptocurrency market could undergo substantial changes, making this a pivotal moment for digital assets worldwide.
What is fueling speculation about China lifting its cryptocurrency ban?
Rumors Rumors are circulating in 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 this is true, and this is the second time I’ve heard this in weeks, it’s a big deal. Does anyone have any ideas?” Novogratz questioned.
Read more: Cryptocurrency Regulation: What are the Benefits and Drawbacks?
One of the significant developments fueling these rumors is Justin Sun’s recent legal victory. In June, the founder of TRON Network gain a defamation case in the People’s Court of China.
The court ruled in his favor against Chongqing Business Media Group, which accused him of various illegal activities. Some interpreted Sun’s legal success as a sign of potential changes in China’s regulatory approach to cryptocurrencies.
Adding to the speculation is the cryptocurrency exchange’s move Bybit, which has announced plans to allow Chinese expats to open accounts and trade in June. This move is aimed at meeting the growing demand for safe and easy-to-use cryptocurrency trading solutions among the Chinese diaspora.
Reports suggest that Bybit may have simplified the sign-up and verification processes for users in China. Some see this move as a hint of a possible softening of the country’s crypto stance.
Bitcoin and Ethereum approval in sight Exchange-traded funds (ETFs) in Hong Kong this April has fueled further speculation. These ETFs are available in several currencies, including the US dollar, the Hong Kong dollar and the renminbi. However, the mainland Chinese investors are still banned to invest in these ETFs.
Underground Markets and High Volumes: China’s Hidden Cryptocurrency Landscape
Hong Kong’s efforts to become a cryptocurrency hub and its unique relationship with China suggest a possible relaxation of the country’s crypto restrictions. Notably, industry leaders 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 comprehensive ban included crypto mining, storage, and use. 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 use an underground network of brokers to obtain cryptocurrencies. Meanwhile, others trade directly in public places, exchanging encrypted wallet addresses and complete transactions with cash or bank transfers.
Read more: Why are Hong Kong spot cryptocurrency ETFs important?
Value of Cryptocurrencies Received Between East Asian Countries. Source: Chain analysis
A report by Chainalysis revealed that between July 2022 and June 2023, the value of cryptocurrencies received in China reached $86.4 million. The report also highlighted that transaction volumes in centralized systems and decentralized exchanges in China accounted for 73.5% and 20.5%, respectively, of the global averages. These numbers reinforce the narrative that the lifting of the cryptocurrency ban in China could significantly affect the broader market.
Disclaimer
In accordance with the Trust Project guidelines, BeInCrypto is committed to impartial 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 PolicyIt is Disclaimers have been updated.