Welcome everyone ! In this article we will take a closer look on the Chinese situation and why it could be huge importance for the crypto world.
History of china regarding crypto
Since the creation of Bitcoin in 2008, the relation with has been somewhat “tense”. Indeed, China has ban crypto nearly 20 times since the creation of the currency !
The most notorious ones are the ban of initial coin offering and exchanges in september 2017 even tho people could get crypto via P2P trading platforms and offshore exchanges. And in 2021 the ban of mining and the trading of cryptocurrencies, it was one of the cause of the “ crash of 2021 “ .
Source : coingecko
We can also highlight the importance that China have in term of mining power :
All of that allowed the creation of a stable coin controlled by the government.
You may ask why did China ban crypto in the first place ? It was officially because there was concerns over scams, money laundering, and capital flight played a part.
What is the situation now ?
The situation is slowly moving towards a crypto come-back for the second largest economy of the world ! Here is some proof why :
First of all, the Chinese television talked about crypto in a good way ( yay ! ) which is a very big deal; even CZ commented it :
As you can see he is very enthusiastic about the futur.
The second reason is the fact that Hong Kong is now allowing exchanges to come back but the problem is that for now zero exchange got the permission of the Securities and Futures Commission ( SFC ).
Conclusion :
The next bullrun might be trigger from the West, if China change his view on crypto we will see a flow of demand and thus increasing the price . But for now, enjoy the rest of your day !
Source : https://twitter.com/CryptoKingKeyur/status/1661970732526755842
Thank you for reading
