China Might Have a Relook at the Cryptocurrency Trading Ban
It might be premature to say that China could revoke the ban placed on the cryptocurrency trading within the country. However, there is enough indication that the Chinese establishment is looking at the possibility of having a relook at the controversial ban slapped on the digital coin. The confidence came from an editorial on the State-owned Globaltimes.cn that the establishment could change its opinion on the virtual currency trading. If that happens, it could well be a big boost to the overall community in the sector.
The People’s Bank of China has imposed a ban on cryptocurrency trading either on the domestic or foreign soil apart from initial coin offerings (ICOs) early this year. Since then, the future of the digital currency market has become a question mark in the country. There were also contradictory signals from the establishment of the new age cashless instrument. That is because Chinese central bank governor, Zhou Xiaochuan, indicating in March last that it was an unavoidable factor as far as the virtual currency and the evolution of money is concerned.
The governor went on to add that it was inevitable that paper money could replace digital coins. On top of this, he disclosed that the PBOC was analyzing not only bitcoin but also other virtual currencies so that it could have plans of coming out with its own cryptocurrency. This positive statement only short-lived as the rulers cracked its whip on digital currency trading and blocked social media accounts that have links to trading platforms. These statements and actions were good enough to confuse those engaged in the virtual currency space.
However, the State-backed newspaper’s latest editorial is viewed as the strongest indication that the domestic government could think of revoking or relaxing its ban on cryptocurrency. The country could also engage itself in regulating the market rather than ignoring it out rightly. Incidentally, the Securities and Exchange Commission (SEC) has termed the virtual currency as security and brought it under its ambit for its survival. Though the digital coin players will keep on murmuring since they were allowed a free run until last year, they will not have any alternative but fall in line.
The editorial pointed out that China is focusing increasingly on the innovation-driven economy. Therefore, a blanket ban on the blockchain technology or digital coin could not be an effective tool. As a result, it could have unintentional consequence offering the technological leadership initiative position to some other country, CCN reported.
The editorial focused on the tussle between the United States and China for economic supremacy. The article said, “[The] more proactive stance the US takes in regulating the cryptocurrency market…over time will contribute to digital currency sophistication in the world’s largest economy. It’s time for China to lay the regulatory groundwork for its rise as a future digital currency trendsetter.”
In effect, the article pointed out that there is every chance that China could be behind in the revolution towards digital currency if it continued to see the fears of bitcoin bubble alone.