Justin Sun of Tron and Mike Novogratz from Galaxy Digital lit up X with hints that the China crypto ban might be over.
Sun tweeted on August 18, “China unbans crypto. What’s the best meme for this?” while Mike Novogratz mentioned last month that China could unban Bitcoin by late 2024.
China 🇨🇳 unbans crypto. What's the best meme for this?
— H.E. Justin Sun 孙宇晨(hiring) (@justinsuntron) August 18, 2024
China’s crypto policy swings like a pendulum, from strict bans to relaxed rules. Approach with caution.
China’s Ongoing Influence
The story of China’s crypto regulation is one of relentless crackdowns and evolving policies:
- 2013: Financial and payment institutions were restricted from involving themselves with Bitcoin.
- 2017: Initial Coin Offerings (ICOs) were banned, and crypto exchanges were forced to cease operations.
- 2021: A more extensive crackdown declared virtual currency-related business activities illegal
While Western media has talked at length about China having a total ban, the reality is different.
For instance, last year, Binance handled $90 billion in Chinese crypto trades in just one month. China also remains a strong player in Bitcoin mining despite regulatory hurdles.
Western media loves to scream “crypto ban” when talking about China, but they’re missing the point. China’s restrictions are real, but they don’t amount to a full-scale ban. If you dive deeper, individual coin ownership and peer-to-peer trading are still in the game.
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Justin Sun: Reading Between the Lines
In China, the unwritten rules often matter more than the written ones. People find ways to slip through the cracks, even under tough regulations.
A 2021 document published by a court in Fujian all but spells out that “administrative laws and policies do not completely prohibit virtual currency transactions.”
The story of a total crypto ban in China is overblown, and now we might see them openly declaring that. As the world scrambles for more crypto, with US leaders jumping on the bandwagon, China could be gearing up to join the race.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
