Mainland China has a history of banning certain Bitcoin-related activities, yet it continues to be a major player in Bitcoin mining.
Amid fresh reports on social media suggesting that China might lift its long-standing ban on Bitcoin, the cryptocurrency community remains skeptical about this possibility.
On July 14, Galaxy Digital CEO Mike Novogratz shared on X (formerly Twitter) that he has been hearing reports suggesting China is “likely to unban” Bitcoin by late 2024.
“If this is true, and it’s the second time I’ve heard it in weeks, it’s a huge deal,” Novogratz wrote, asking the community to provide more insights on the issue.
China’s Repeated ‘Bans’ on Bitcoin
Most responses to Novogratz’s post questioned the source of the information. Many expressed doubt regarding China’s potential U-turn on Bitcoin. Some noted that China has never imposed a complete ban on Bitcoin.
“They have banned it like six times, and nothing has happened. The same thing will happen when they ‘unban’ it multiple times,” one commenter noted.
China has made several attempts to prohibit certain activities related to Bitcoin and other cryptocurrencies, including a crackdown on crypto in 2021 and a ban on crypto exchanges in 2017. Despite these measures, China has remained a global leader in Bitcoin mining and other crypto activities.
Optimism and Skepticism Within the Industry
Some industry observers remain optimistic about China’s potential Bitcoin U-turn, especially given recent criticism of China’s approach to crypto regulation. In late June, Wang Yang, a professor at Hong Kong University of Science and Technology, criticized the ban on crypto mining, urging the government to embrace crypto amid geopolitical risks. He argued that banning crypto mining was “very unwise” as it drove businesses to the United States and contributed to U.S. tax income.
However, many industry figures believe China is unlikely to allow its citizens to freely trade Bitcoin using local currency. Yifan He, CEO of Chinese blockchain firm Red Date Technology, stated, “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.” He emphasized that those suggesting otherwise may not understand the reasons behind China’s bans on Bitcoin and cryptocurrencies.
He also mentioned that Hong Kong-based exchanges like HashKey do not allow mainland Chinese citizens as customers, highlighting the strict regulatory environment.
Summary Review: While reports about China potentially lifting its Bitcoin ban have sparked discussions, skepticism remains high within the community. Despite some optimism, the prevailing sentiment is that China is unlikely to change its stance on Bitcoin trading anytime soon. The regulatory landscape and historical context suggest that a significant policy shift is improbable in the near future.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
