If there is anything constant in today’s cryptocurrency market, it’s the volatile price swings of digital currencies coupled with changing opinions of regulators on the market. In fact, regulators have caused alarm among investors especially since the start of 2018.
Whether for better or worse, regulators still don’t know exactly what to do with cryptocurrencies. Take Quebec, for instance, at one point, they banned crypto mining only to welcome applications recently. And after seeing a massive number of interested miners from China, Quebec’s provincial government decided to halt new applications considering the possible drawback that it can affect its residents.
China is one of the very first countries to take a stance on cryptocurrencies. They were the first to ban crypto activities. However, it seems that there are some signs that there could be some changes. Now, many believe that there are indications that the Chinese government may actually favor crypto investors in case the country’s regulators make the necessary changes.
Contradictory Signals
Though there seem to be some conflicting signals coming from Chinese regulators as to how they are going to approach cryptos next, this remains good news nonetheless.
For instance, a speech by the Chinese central bank governor Zhou Xiaochuan in March mentioned that digital assets are an inevitable step in the evolution of money. He even went to mention that paper money and coins could soon be replaced by digital assets. And also, PBOC was already studying Bitcoin and other cryptos.
However, Chinese regulators’ crackdown on crypto market continues despite this announcement. On the same month, social media accounts linked to trading platforms were blocked.
Also, another interesting event that needs to be pointed out was the Globaltimes.cn’s editorial on May 30. This is a news website which is owned by People’s Daily.
What the editorial could indicate is that Chinese regulators are already willing to relax its rules regarding cryptos. For one, People’s Daily newspaper is not necessarily engaged in independent opinions regarding policies. Rather, it has been used by the Chinese government to either inform or test the public’s reaction on certain policies.
It was mentioned in the article that “fencing off bitcoin exchanges can’t effectively end biotin trade, and fears of bitcoin bubble could leave China behind in the digital currency revolution”
Could this fear sum the interest of China to revisit its previous call on the cryptocurrency industry? The crypto market has been described as a potential threat to the financial system of China. However, it then points out the involvement of American regulators when it comes to the trading market.
SEC Working with Crypto Businesses
Coinbase has been reported to be working with the US Securities and Exchange Commission recently. In addition to this, Coinbase also has plans of entering the Japanese market despite the new rules imposed by the country on exchanges.
Also, you have the fact that Jay Clayton clarified that cryptocurrencies can never be considered as securities.
What could be the future of cryptocurrencies in China? If the country decides to open up to cryptos, it can be a large market that could mean a bullish run for the entire crypto market.
