briefly
- Even though China has banned cryptocurrencies for a long time, interest in investing in cryptocurrencies such as Bitcoin is surging.
- China’s underground cryptocurrency market has recorded significant trading volume.
- The current economic downturn is attracting investors to the cryptocurrency market.
Just today, a Chinese economic daily warned its readers to stay away from investing in Bitcoin or other products related to cryptocurrencies. His attention was drawn to the country’s ban on all cryptocurrencies and related products. Considering this situation, Xiao Sa, a lawyer from Beijing, emphasized that the recent ban has made it impossible for almost anyone living on Chinese soil to legally trade cryptocurrencies and ETFs. His statement was as follows:
“The approval of a Bitcoin ETF does not mean that the cryptocurrency will achieve a breakthrough in the short term,” Sa said.
According to the China Economic Daily, investors should continue to exercise caution when dealing with Bitcoin and other items related to it. This drew attention to the country’s ongoing restrictions on these types of transactions. Xiao Sa, a lawyer from Beijing, further supported this position by emphasizing that only people living in mainland China can legally engage in cryptocurrency trading.
Will China lift the ban?
Despite all the restrictions and regulations imposed on Chinese citizens, interest in Bitcoin and other cryptocurrencies has remained strong. The price of Bitcoin recently surged 58%, sparking a lot of interest. On the other hand, the Chinese stock market is struggling to maintain its position in contrast to the economic downturn. Financial institutions in China and Hong Kong are seeking investment opportunities related to cryptocurrencies and ETFs.
In the long term, the ultimate way out of the digital asset industry, including cryptocurrency, is to serve the real economy, help traditional industries change and upgrade, and improve quality and efficiency. “In the past few years, many mainstream digital assets have achieved great success because innovations in digital technology and industrial applications have effectively transformed real-world industry challenges.” Therefore, Yu Jianing said that the future development trend of the digital asset industry should be driven by digital technology innovation, manifested by business model innovation, and expanded by application scenarios.