The cryptocurrency situation in China has been pretty interesting to keep an eye on. After initial successes, the PBoC banned all CNY-based trading. This decision has set China back several years in the world of cryptocurrency. However, there may be light at the end of the tunnel. According to Bobby Lee, the ban on CNY trading may be lifted sooner than people think. After all, the country is falling well behind Japan and South Korea in this industry.
At first, the ban on CNY-based cryptocurrency trading was considered to be permanent. As time progresses, rumors surfaced regarding this being a temporary measure. While we still don’t know which story is true, Bobby Lee feels things will change very soon. In fact, he is convinced this ban will be lifted a lot sooner than people may think. Nothing is permanent in the world of government bans, and cryptocurrency is certainly a thriving industry. It is not necessarily in the best interest of China’s government to maintain this harsh stance.
Can China Reclaim the Cryptocurrency Throne?
Whether or not that is true, remains to be determined. At the time of writing, Bobby Lee did not provide any official timeframe as to when this decision will be overturned. Nor has there been any official confirmation from the government as to how this situation will evolve. It is evident the decision to ban CNY-based cryptocurrency trading hasn’t paid off in any way. All it did is cause all cryptocurrencies to appreciate in value and cut China off from partaking in these opportunities.
It is evident there is no big love from China for Bitcoin and other similar currencies. The country has gone through various forms of regulation to prevent this trading activity. In the end, their trump card had to be played by banning all CNY-based activity. While it causes a Bitcoin price stumble, the long-term effects are neglectable. There is no word on how the ICO situation is evolving in China either. For now, that type of business model will remain illegal until further notice.
Controlling cryptocurrencies is impossible for any government by default. Regulating exchanges is a must, but there’s no reason to outlaw fiat currency-based trading. China is a very strict country in this regard. There are tight capital controls to contend with at all times. Until the situation changes in China, local exchanges will continue to look for partners abroad. Huobi has recently done so, as they are set to enter the Japanese market very soon. It is not unlikely China will become completely irrelevant in the world of cryptocurrency if things don’t change in the near future.
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