In China, cryptocurrency activities are officially banned by the government, but at present, the Chinese government may be thinking of investing in the cryptocurrency market and maybe adding Bitcoin to its strategic reserves.
Surge in Bitcoin Trading Despite Ban
According to the reports, the Chinese government has a permanent ban on cryptocurrency trading and other mining activities. However, this activity has no big impact. In a record, China recorded an estimated $86.4 billion in cryptocurrency transactions, beyond Hong Kong’s $64 billion during the same period. This shows that this is a strong underground market and provides over-the-counter platforms and informal peer-to-peer networks.
Speculations on Governmental Bitcoin Accumulation
According to a report, a bitcoin advocate, Max Keiser, has claimed that China and Russia are presently interested in buying Bitcoin. Recently, Max Keiser stated in a post on social media that “CHINA AND RUSSIA ARE BUYING #BITCOIN. THIS IS GETTING WILD!!!”
Another report also suggests that China is organising high-level closed-door meetings to discuss incorporating Bitcoin into its strategic reserves. David Bailey, a noted person in the Cryptocurrency Market, has shown that these reports are not certain and on the other hand, official confirmation remains pending.
Legal Ambiguities and Future Outlook
After the official ban by the Chinese government, there are a few specific aspects of China’s legal stance on cryptocurrency. According to a recent report, a Shanghai court has mentioned that personal investing in Cryptocurrency is not illegal under Chinese law and provides some legal services to those who are individual holders in the Cryptocurrency space.
According to a report, the Chinese government thought that they might revise their policies and arrange them in a sequence because Hong Kong uses Web3 technologies and includes the global Cryptocurrency landscape. According to the experts, the Chinese government is lifting its crypto ban, and there is a 50% chance of it.
