Has Crypto disappear from China?
When I first knew about Bitcoin, China used to be one of the biggest players in cryptocurrency with bit coin miners that contribute to 75% of btc supply in the world. I remembered seeing the amount to btc flowing towards China with http://fiatleak.com/
THE CRACKDOWN
At the end of 2017, the Chinese policy began to banned trading of Cryptocurrency in mainland China. Big companies like Huobi and BTCC have to move outside mainland China to operate.
However, according to a leaked memo very recently at January 2 from the ‘Leading Group of Internet Financial Risks Remediation’ — China’s internet finance regulator which initiated the clampdown on bitcoin — bitcoin miners should make an “orderly exit” from China because they have consumed “huge amounts of resources and stoked speculation of ‘virtual currencies.”
In other words, this is no joke, even miners are affected. The CEO of one large mining group has confirmed so
SourceChinese authorities are dead serious about cryptocurrency
According to Quartz, local representatives must report back on their progress of removing miners in their region on a monthly basis. The situation is not as easy as it seems because most of the time, the company collaborate with the local government to boost local economy, especially at places where traditional industries are struggling.
So, do people stop trading??
No. They simply go underground. When there is a will, there is always a way. Bear in mind, that the banned is within Mainland China, meaning that chinese people may choose an alternative method by opening a bank account overseas and store money there and still be able to buy cryptocurrency and trade using international platforms.
on the contrary...
"People have the right to freely participate in bitcoin trading at their own risk.”
How it will affect foreigners?
Assuming you are an expat in China and you earn your income in Chinese yuan, being able to buy btc in Yuan and trade would be a huge benefit. You don't have to convert to USD which will consume more time and face the risk the exchange rates.
CONCLUSION: Will cryptocurrency ever come back to China?
Like the one child policy, nothing is permanent. There is hope, maybe not today or tomorrow but certainly in the future. When specifically? No one can say. but when it is allowed legally, I'm sure there will be people that are ready for it. People in China are already using electronic payment system at a regular basis and they are certainly not new to the whole concept of virtual currencies.
Cheers,
Reena.K
