Is China Gearing up to unban Bitcoin?

Untitled design 54.jpg

Bitcoin and crypto currency has been banned in China since 2019 however, Chinese nationals were still able to participate in the trading of digital assets through international exchanges. In June 2021 China further increased it's ban issuing a notice to their banks to stop the facilitation of transactions relating to ALL crypto source.

Not long after the market reacted with a dip as mining equipment was confiscated and destroyed to prevent the continuation of mining Bitcoin. Companies scrambled to leave the country in search of new safe havens.

Untitled design 55.jpg
Kazakhstan and the US were tipped as the next locations as Miami and Texas battled it out some miners moved the Kazakhstan as it offered cheaper electricity options.

While US Crypto farms turned larger profits due to China's exit miners who moved to Kazakhstan were met with insecure power supplies with constant power outages and are now seeking to leave the Central Asian nation which ranks second in Bitcoin Hash rates to the US source

Untitled design 56.jpg

Since than the Chinese Company Evergrande has been significantly troubled with financial problems which called a snowball effect seeing China fall into economic hardship source.
59181919_7.png
source

The company alone employs over 200,000 people and has 1.5 Million homes to commence with a collapse being catastrophic not just to China but the entire Asian region. In short, China needs money and it needs it fast.

Untitled design 57.jpg

One man's trash is another man's treasure so to speak. Since China's ban Bitcoin the the decentralised financial system has ballooned as new people join the bull run and continue to prop up the crypto sector to an impressive $US2.6 Trillion.

But recently Co-founders of Huobi Global recently established a new company in Beijing called Beijing Chiyu Mushou which the founders state is not related to crypto currency source. The financial footing of the new company is no where near the same capacity to what Huobi had of $US1.54 Million in capital source.

It will be interesting to see what this new enterprise becomes as its founders were crypto focused it is on everyone'd minds if this new entity will recommence offering digital services.

What are your thoughts? Is China gearing up to unban Crypto?

Image sources provided supplemented by Canva Pro Subscription. This is not financial advise and readers are advised to undertake their own research and/or seek professional financial services

Posted Using LeoFinance Beta



0
0
0.000
8 comments
avatar

I would say that China is going to have a problem with crypto mining since they are already having power issues.

However, allowing cryptocurrency in their country would be smart. I dont see the CCP doing it though. They will crash the economy before giving up control.

Posted Using LeoFinance Beta

0
0
0.000
avatar

It will be interesting to see what they do in this space. I'm thinking they will try and create their own internal national exchanges closed off to the rest of the world.

0
0
0.000
avatar

That certainly is in line with their thinking. We cannot dispute that.

It seems the CCP is more focused upon control and keeping civil unrest to a minimum. They are "doing more" for the people now.

Posted Using LeoFinance Beta

0
0
0.000
avatar

No I don't think China will unban BTC or crypto in general. They still prefer to maintain control over the currency and I know they are trying to get stocks unlisted from the US stock market. So in a way I don't think they will do so.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Yeah I saw that today, trying to pull in DiDi which is quite an odd move considering they're cash strapped.

0
0
0.000
avatar

It's not the first stock they tried to delist so I think they want to move back everything internally into their country and try to reform it to maintain control. It's the same reason why I think they also banned crypto because it's a threat to the yuan in the country.

Posted Using LeoFinance Beta

0
0
0.000
avatar
(Edited)

Interesting read. Still trying to understand everything tho since I'm somehow a newbie in the crypto world. But reading here and there is adding bits of knowledge.

Although I could not say if China if unban or not. Very limited knowledge about the topic.

0
0
0.000
avatar

Recent Chinese history ("recent" in terms of last century or so) suggests that CCP, when the push comes to shove, is more than willing to reverse its policies and find all kinds of interesting justification for straying from official ideological dogma.

Posted Using LeoFinance Beta

0
0
0.000