As the financial world turns its attention to China, all eyes are on its recent decisions regarding digital assets. If a strategic turnaround were to soften its position, it could mark a real peak for bitcoin and its cronies. But for now, the Chinese authorities are strengthening their regulatory framework. With their new rules on foreign currency exchanges, crypto transactions are now under strict control.
Chinese crypto regulation: towards total lockdown
China, which is currently facing unprecedented economic challenges, has just established new Chinese rules requiring banks to scrupulously track the identity of individuals and institutions involved in crypto transactions. The objective? Uncover activities deemed risky, such as money laundering, cross-border gambling and clandestine banks.
These measurements, reported by the South China Morning Post, also aim to prevent the use of yuan to buy cryptocurrencies before their exchange for foreign currencies.
According to Liu Zhengyao, lawyer at ZhiHeng, this tightening provides an additional legal basis for punish digital asset trading.
“ New rules make it almost impossible to circumvent Chinese restrictions through cryptocurrencies “.
Some notable figures:
- 194,000 Bitcoins held by China, resulting from judicial seizures;
- A total value estimated at $18 billion;
- Rank: Second country in terms of BTC ownership.
Despite this apparent opposition, these assets give China a paradoxical position: that of a key player, despite open hostility towards cryptos.
Bitcoin in China: paradox and unexplored potential
Despite its banning of cryptocurrencies in 2019China could, according to some experts, change course quickly. Changpeng Zhao, former CEO of Binance, recently presented an inevitable scenario at an event in Abu Dhabi:
“ If China decides to adopt a Bitcoin reserve strategy, it will be able to act very quickly. She will have to do it sooner or later. »
The repression on mining had been justified by the desire to reduce greenhouse gas emissions and energy consumption. However, assets seized during illicit activities remain under government control, a glaring contradiction that could serve as support for a possible strategic shift.
China still has immense influence over the global cryptocurrency market. His decisions are likely to shake up crypto exchanges and propel BTC to new heights.
Arthur Hayes, former boss of BitMex, seems to be whispering in the ear of Chinese leaders that bitcoin could well be a winning ticket for a next bull run.
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