China Puts On Harsh Sentences For Bitcoin Fundraising
I am a simple man, when I see bitcoin ban I get excited and I click, even better when it comes from developed economies and larger economies. Keeping capital flow out of bitcoin and concentrated in their economies is better for smaller countries and institutions to get ahead, and naturally for the average pleb like myself to build an outsized stack to what people in this market can afford in the future.
China has been hell-bent on beating bitcoin out of its borders, first with a mining ban and which temporarily knocked back hash power and the price.
Bitcoin eventually recovered as miners found new homes and we continue to soldier on as if it never happened. As for China, there are still some secret mining operations in the country but it's nowhere near the large portion of the network that it was 2 years ago.
Getting rid of miners was only part 1 of the plan, the next part is to get it out of the hands of people.
Jail time for Bitcoin fundraisers
As we saw in Canada and now Ukraine, people are able to mobilize funding around financial institutions and governments. Think, if the protests in China in 1989, were not simply students and average workers, but students and workers with global funding flowing in to support their cause, it would really put pressure on governments.
Something China wants to avoid and thanks to a new ruling by their Supreme Court raising funds in Bitcoin can potentially result in lengthy jail sentences for citizens found guilty.
Expanding on previous bans
China is no stranger to banning capital raises in digital assets and back when the ICO bubble was forming they banned crypto fundraising in 2017. Now those rulings have been amended to include fundraising and allowing for prosecution.
The law takes effect on March 1
If found guilty, a single offender can expect
- up to 10 years in prison,
- as well as fines as high as 500,000 yuan ($79,000)
Can't have competition for your CBDC
China has gradually increased its rhetoric and rulings against cryptocurrency as it rolls out its digital Yuan. We already see how they've gotten rid of cash to ensure the Yuan has no escape and no competition, so allowing for bitcoin would provide a pressure release valve for citizens to escape.
If you are to have a successful CBDC you cannot have competition it has to be stamped out.
Bullish for bitcoin
Bitcoin is a monetary network, it means that it's not the amount of users coming in but the amount of value it brings in. As western economies in Europe try to tighten their grip on flows into Bitcoin and China do too, it only means massive capital allocators cannot get exposure.
This helps with the early redistribution of value and keeps the little guy in the pound seat if he or she is willing to stack. Once the exclusion of the bitcoin standard comes back to bite your country as others progress past you, those flood gates will eventually release.
Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
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