The cryptocurrency community is still pessimistic about China lifting its long-standing ban on Bitcoin, despite recent stories on social media suggesting this may happen. The China Bitcoin recently took another dimension when Galaxy Digital CEO Mike Novogratz stated that he has heard rumours that China is “likely to unban” Bitcoin before the end of 2024. “It’s a big deal if this is true, and it’s the second time I’ve heard in weeks,” Novogratz said, requesting further information from the community on the matter.
China has “banned” Bitcoin Several Times
In Novogratz’s X thread, the majority of responses have questioned the information’s source. Several users questioned the possible reversal ofChina Bitcoin Ban position. Additionally, other commentators contended that China has never outright prohibited Bitcoin. “They’ve probably outlawed it six times now, and nothing has changed. When they repeatedly un-ban it, the same thing will occur,’ a commenter pointed out in the comments.
The commentator brought out the several attempts made by mainland China to outlaw certain activities pertaining to Bitcoin and other cryptocurrencies, such as the interdepartmental crackdown on cryptocurrencies in 2021 and the 2017 prohibition on cryptocurrency exchanges. China has maintained its position as the world leader in Bitcoin mining and other cryptocurrency operations in spite of the stringent regulations.
Industry Watchers Remain Upbeat Over Possible China Bitcoin Ban
Online commenters were upbeat about the most recent social media posts, especially in light of the criticism that mainland China has recently received for its approach to cryptocurrency regulation. Wang Yang, a professor at Hong Kong University of Science and Technology, allegedly questioned the reasoning for China’s prohibition on cryptocurrency mining in late June and urged the government to embrace the technology in light of the geopolitical dangers involved. The expert said that outright prohibiting cryptocurrency mining in China would be “very unwise,” because it attracted related business firms to the US and increased US tax revenue.
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China ‘Unlikely’ to Have Any Motivation to Open to Crypto
In response to the latest social media reports on China Bitcoin ban, several industry figures expressed confidence that China will not ever allow its citizens to freely trade Bitcoin using the local fiat currency.
“If you refer to ‘unban Bitcoin’ as China would allow Chinese citizens to buy Bitcoin with China’s renminbi from inside China, it is not going to happen, period,” said Yifan He, CEO of major Chinese blockchain firm Red Date Technology. “Whoever suggests this has no slight idea why China bans Bitcoin and cryptocurrencies,” He told Cointelegraph. The CEO also mentioned that one should pay attention to Hong Kong-based exchanges like HashKey, which do not allow mainland Chinese citizens as customers. Mikko Ohtamaa, co-founder of algorithmic investment protocol Trading Strategy, echoed He’s stance, arguing that China’s U-turn on Bitcoin would be against the government’s political agenda.
“It is unlikely the rumours China is opening for crypto are true, as this would be against Xi’s agenda on how the Chinese state is built,” Ohtamaa told Cointelegraph. He added:
“China’s concern with crypto has always been the capital flight […] Cryptocurrencies further democratize finance and enable capital flight for middle and low-income classes.”
The news of the China bitcoin ban comes a few months after some industry observers falsely speculated that Hong Kong’s launch of spot Bitcoin and Ether (ETH) exchange-traded funds (ETF) in April 2024 would open up the market for investors in mainland China. According to local experts, the ETF issuers cannot provide such exposure despite having close ties with mainland China. Stay tuned as The BIT Journal offers up-to-date details on what is happening in the cryptocurrency sector.
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