China’s crackdown indicates an upcoming crypto ban
Ballet CEO Bobby Lee recently spoke about the increasing cryptocurrency crackdown in China, suggesting that the action signals an upcoming crypto ban in the country. Lee discussed that despite the Chinese government showing support for a digital renminbi, it apparently has “no interest in nurturing the cryptocurrency market.”
Lee also alleged that the Chinese government is attempting to regulate cryptocurrencies only “to achieve its overarching goal of globalization of digital RMB.”
While Lee is known for his clashes with the top-level Chinese officials during his stint of running China’s first cryptocurrency exchange BTCChina, his words resonate with crypto analysts studying the region. Lee also said that China is disinterested in any kind of exosystem relating to crypto markets no matter how vast it may be, declaring that he fears in another 4-5 years China “might outright ban the cryptocurrency.” He attributed this comment as one resulting from the 2017 heightened scrutiny and regulations on the crypto market in the country.
Lee has also commented on the recent ban on crypto mining by the Chinese government, pointing out that the curb was originally aimed at deterring Chinese citizens from getting closely involved in high investments in the crypto trading and exchange ecosystem. He further explained that China would eventually ban both the Bitcoin and cryptocurrency market altogether, citing “risky trading” in crypto businesses as the cause.
Speaking about the ban’s effect on Bitcoins valuation, Lee claimed that whether China accepts or bans cryptocurrencies, it would not affect the Bitcoin’s massive trading volume or the crypto exchange market. Lee believed that contrary to the Chinese belief, “Bitcoin is not a direct competition to the digital yuan.”