China remains a very peculiar country when it comes to Bitcoin and other cryptocurrencies. Despite the government issuing a ban on CNY-based trading a while ago, it seems there is still a very tangible interest in cryptocurrencies. In fact, it seems the Chinese government might reverse its stance on this form of money fairly soon.
What is Happening in China?
Ever since China’s government and central bank declared a ban on the CNY-based trading of cryptocurrencies, a lot of things have changed. First of all, China no longer plays any role of importance in the cryptocurrency industry, which is only to be expected. Additionally, other countries have begun legitimizing cryptocurrency, with Japan leading the charge in this regard.
South Korea is also taking regulatory measures designed to let Bitcoin thrive in the country. As such, Chinese officials have thought twice about what to do with this innovative form of money. Although no official changes have been announced, local news outlets seem convinced Bitcoin will make a strong comeback in the country fairly soon.
While it is still too early to say whether or not that will actually happen, it’s interesting regardless. Saying no to Bitcoin has been considered a positive decision on the part of Chinese officials, although the rest of the world seems prepared to embrace cryptocurrencies sooner rather than later. As such, the Asian powerhouse cannot allow itself to miss out on any major innovations.
Additional regulation in China would be a rather intriguing development. While not everyone sees merit in regulating a decentralized cryptocurrency, it is still preferable over having countries and governments ban all related activities. As such, it will be interesting to see what the government comes up with moving forward, as there are still a lot of unanswered questions at this stage.
Assuming Chinese officials want to regulate Bitcoin rather than ban it, the cryptocurrency world will undergo some major changes. China was always a powerhouse when CNY-based trading was allowed, and a return to that situation could spell a very bullish future for Bitcoin and other currencies.
At the same time, it remains unclear if and when any changes can be expected. Misdirection in terms of news and speculation is quite common in China, after all. Until the government offers an official explanation as to what is going on, no real changes regarding cryptocurrencies should be expected.