Amid recent social media reports suggesting China may lift its long-standing ban on Bitcoin, the cryptocurrency community remains doubtful about the likelihood of such a move.
On July 14, Galaxy Digital CEO Mike Novogratz shared on X (formerly Twitter) that he had heard rumors of China potentially “unbanning” Bitcoin by late 2024. “If this is true, and it’s the second time I’ve heard it in weeks, it’s a huge deal,” Novogratz commented, seeking more insights from the community.
Historical Context of China’s Bitcoin Bans
China has a history of imposing restrictions on Bitcoin and other cryptocurrencies. Despite these bans, the country has maintained a significant presence in Bitcoin mining and other crypto activities. Many in the community remain skeptical, recalling China’s repeated bans on Bitcoin-related activities, including a major crackdown in 2021 and a ban on crypto exchanges in 2017.
One commenter on Novogratz’s post noted, “They have banned it like six times, and nothing has happened. The same thing will happen when they ‘unban’ it multiple times.”
Optimism Amid Skepticism
Some industry observers remain cautiously optimistic. Recent criticism of China’s approach to crypto regulation has fueled speculation. For instance, in late June, Wang Yang, a professor at the Hong Kong University of Science and Technology, criticized China’s ban on crypto mining. He argued that the ban was “very unwise” and that it pushed related businesses to the United States.
Source: Mike Novogratz
Industry Experts Doubt a Reversal
Despite the optimism, several industry figures believe China is unlikely to change its stance on Bitcoin. Yifan He, CEO of Chinese blockchain firm Red Date Technology, expressed strong doubts.
“If you refer to ‘unban Bitcoin’ as China allowing Chinese citizens to buy Bitcoin with renminbi from inside China, it is not going to happen, period,” He told.
Similarly, Mikko Ohtamaa, co-founder of algorithmic investment protocol Trading Strategy, argued that a reversal would contradict the Chinese government’s political agenda.
“China’s concern with crypto has always been the capital flight. Cryptocurrencies further democratize finance and enable capital flight for middle and low-income classes,” Ohtamaa explained.
Conclusion
The recent speculation follows incorrect predictions that Hong Kong’s launch of spot Bitcoin and Ether exchange-traded funds (ETFs) in April 2024 would open the market for mainland Chinese investors. Local experts confirmed that ETF issuers cannot provide such exposure despite their close ties with mainland China. The community remains cautious, awaiting concrete developments before drawing any conclusions about China’s stance on Bitcoin.
