Summary
- Despite China’s long-standing ban on cryptocurrencies, interest in Bitcoin and other crypto investments is on the rise.
- The underground crypto market in China is witnessing a significant volume of trading activities.
- Amid the ongoing economic downturn, investors are increasingly attracted to the cryptocurrency market.
Today, China’s Economy Daily advised its audience to steer clear of investments in Bitcoin and any cryptocurrency-related products. This warning is a response to the nation’s prohibition on all cryptocurrencies and associated products. A Beijing lawyer, Xiao Sa, emphasized that the recent ban effectively prevents nearly everyone in China from legally trading crypto and ETFs. His remarks included:
“The approval of Bitcoin ETFs does not imply that cryptocurrencies will experience significant developments in the short term,” Sa stated.
According to China’s Economy Daily, investors should remain vigilant when engaging with Bitcoin and related items, highlighting the ongoing restrictions on such transactions. Lawyer Xiao Sa from Beijing supported this view, stressing that only individuals residing in mainland China can participate in cryptocurrency trading legally.
Will China Lift the Ban?
Interest in Bitcoin and other cryptocurrencies continues to be strong despite the strict regulations imposed on the Chinese populace. The recent astounding 58% rise in Bitcoin prices has drawn increased attention. Conversely, the Chinese stock market struggles amid the country’s economic challenges. Financial institutions in China and Hong Kong are exploring investment opportunities in crypto and ETFs.
Ultimately, for the digital asset sector, including cryptocurrencies, to thrive, it must connect with the real economy and aid traditional industries with transformation and enhancement in quality and efficiency. “Over the past few years, many mainstream digital assets have found success due to their innovative approaches in digital technology and industrial applications that address significant issues in the real industry,” Yu Jianing remarked. Therefore, the future direction of the digital asset industry should hinge on innovation in digital technology, reflected through innovative business models and expanded application scenarios.
