In a surprising turn of events, China has begun sending signals that it might reconsider its crypto ban. Consequently, providing hope for a potentially lucrative crypto market in the future.
The current regulatory developments in Hong Kong and technological advances in mainland China suggest that the crypto ban might finally be lifted.
A Brief History of China’s Crypto Ban
China’s relationship with the cryptocurrency industry has been tumultuous since 2013, when the country first imposed strict restrictions. The first ban came in December of that year when the People’s Bank of China (PBoC) and other financial watchdogs prohibited banks from handling transactions related to Bitcoin.
Bitcoin was deemed a “special virtual commodity.” Regulators argued that it lacked the legal backing to function as a currency. Therefore, it was seen as a potential outlet for laundering cash.
In 2017, China took further steps to prevent money from flowing out of the country illegally. In January of that year, the PBoC launched an investigation against crypto exchanges, focusing on forex management and anti-money laundering.
The findings led to the decision to ban initial coin offerings (ICOs) in September. Subsequently, the PBoC ordered capital raised via ICOs to be returned to investors.
It also banned financial institutions and non-bank payment companies from providing services that catered to token-based fundraising activities and issued a directiv
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Author: Bary Rahma
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