China, one of the world&#8217;s leading economies, has been a significant player in the cryptocurrency discourse for years. Those who have been investing in this sector for a long time are quite familiar with China&#8217;s fluctuating stance. However, those who have only ventured into the world of cryptocurrencies post-2020 may not be fully aware of what to expect. Today, let&#8217;s refresh our memories about China&#8217;s relationship with cryptocurrencies and discuss future prospects. 
<h2 style="text-align: justify;" id="china-and-cryptocurrencies">China and Cryptocurrencies</h2>
Cryptocurrencies in China have been banned as many times as Bitcoin has been declared dead by mainstream media. However, neither has Bitcoin died, nor has China truly banned cryptocurrencies. If Bitcoin were dead, there would be no need for recurrent news about it. Similarly, if China had outrightly banned cryptocurrencies, it wouldn&#8217;t have to re-ban them. 
<h3 style="text-align: justify;" id="2013-china-crypto-ban">2013 China Crypto Ban</h3>
In 2013, we saw the People&#8217;s Bank of <a href="https://en.coin-turk.com/chinas-cryptocurrency-conundrum-a-historical-view-and-expectations-for-the-future/" target="_blank" rel="noopener" data-wpel-link="internal">China</a> ban financial institutions in the country from conducting transactions in virtual currencies like Bitcoin. 
This prohibition on financial institutions did not affect individual investors much. At the time, BTC was experiencing a surge in interest, with many businesses, including the country&#8217;s largest search engine, Baidu, starting to accept BTC payments. 
<h3 style="text-align: justify;" id="2017-china-crypto-ban">2017 China Crypto Ban</h3>
During this period, Chinese authorities targeted Initial Coin Offerings (ICOs). Recall how some NFT projects turned into scams in 2021. ICOs were undergoing a similar transformation back then. 
To curb the ICO madness, China banned all platforms offering ICOs. 
<h3 style="text-align: justify;" id="2021-china-crypto-ban">2021 China Crypto Ban</h3>
Most investors will recall this. The State Council of China announced an official ban on cryptocurrency mining. Elon Musk&#8216;s wave of environmental concerns found an answer in China, with miners&#8217; energy being cut off in the country under the pretense of carbon emission targets. 
Shortly afterwards, the hash rate of the Bitcoin network fell by 50%, and Bitcoin&#8217;s price dropped to approximately $30,000 in the following months. 
Isn&#8217;t this $30,000 level interesting? Investors who were on tenterhooks in 2021, hoping that it wouldn&#8217;t break lower, are now eagerly waiting for it to break higher. It broke lower back then, but what about today? 
<img decoding="async" loading="lazy" class="aligncenter wp-image-80920 size-full" src="https://en.coin-turk.com/wp-content/uploads/2023/05/china-1.png" alt="" width="1442" height="698" srcset="https://en.coin-turk.com/wp-content/uploads/2023/05/china-1.png 1442w, https://en.coin-turk.com/wp-content/uploads/2023/05/china-1-300x145.png 300w, https://en.coin-turk.com/wp-content/uploads/2023/05/china-1-768x372.png 768w, https://en.coin-turk.com/wp-content/uploads/2023/05/china-1-1200x581.png 1200w" sizes="(max-width: 1442px) 100vw, 1442px" />
<h2 style="text-align: justify;" id="is-china-lifting-the-crypto-ban">Is China Lifting the Crypto Ban?</h2>
Cryptocurrency activity in the country has not entirely ceased. As crypto enthusiasts in the country continue to find ways to circumvent restrictions, underground crypto markets have sprouted. However, recent times have shown signs of a possible shift in China&#8217;s attitude towards cryptocurrencies. 
Recent court rulings have started recognizing cryptocurrencies. Hong Kong is welcoming cryptocurrency companies, and cryptocurrencies could be seen as a unique opportunity for the Digital Yuan. China, aiming to increase the global usage of the Yuan, could seize a significant advantage today while the US pressures stablecoins pegged to its own currency. 
June is set to be an exciting month, with Hong Kong legitimizing crypto for individual investors. Furthermore, in the months to come, we will see how serious China&#8217;s intentions are. Hong Kong cannot take these steps without the Chinese government&#8217;s permission. Companies like Tencent would not logically enter agreements with crypto companies without governmental consent. Yet, all these are happening, and China is likely to ease its restrictions. 
<h2 style="text-align: justify;" id="when-should-cryptocurrencies-be-bought">When Should Cryptocurrencies Be Bought?</h2>
The potential lifting of China&#8217;s ban on cryptocurrencies is a development with significant implications for the global crypto market. However, the true impact of this development will only be seen when more concrete information is available. We may receive clearer signals in June. For instance, will Chinese citizens be allowed to invest more securely in Hong Kong-based companies? Will the crypto-friendly approach leap onto the mainland? Only time will tell. 
So, when should cryptocurrencies be bought? When China likely announces the lifting of the crypto ban, the markets will have already priced in the development. However, the excitement is likely to continue even after the official announcement. If you want to be truly risk-averse, you could consider buying when Bitcoin exceeds $45,000 again, which seems less risky than the current situation. 
Beyond this, given the potential for getting it cheaper, you should evaluate your decision under the present conditions. The post <a href="https://en.coin-turk.com/chinas-cryptocurrency-restrictions-a-new-era-in-the-horizon/" data-wpel-link="internal">China’s Cryptocurrency Restrictions: A New Era in the Horizon?</a> first appeared on <a href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.The post <a rel="nofollow" href="https://en.coin-turk.com/chinas-cryptocurrency-restrictions-a-new-era-in-the-horizon/" data-wpel-link="internal">China&#8217;s Cryptocurrency Restrictions: A New Era in the Horizon?</a> appeared first on <a rel="nofollow" href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

China’s Cryptocurrency Restrictions: A New Era in the Horizon?

İçindekiler

COINTURK NEWS

26 May 2023 tarihli diğer yazılar

Lending Protocol RociFi Integrates with zkSync Era

Private: Get On-Chain Block Data Any Time With Parsiq

An Introduction to DVT & SafeStake

Press Release: MetaBeat breaks down NFT entry barriers…

World Economic Forum Provides Guidance on Global Crypto Regulations

Top 5 cryptocurrencies under $1 to buy in June 2023

Güncel kripto para haberleri için ücretsiz bültenimize abone olun!