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Chinese Officials Confused Whether to Keep Cryptocurrencies Banned or Legalize Them

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Sep 15, 2020
Chinese Officials Confused Whether to Keep Cryptocurrencies Banned or Legalize Them

Who would have thought that something that was presented online to the world in the form of white paper would turn out to be the future of online trading and would surpass even the giants of the world’s economy, making their spot among the largest currencies in the entire world? Since 2009, Cryptocurrencies have been a hot topic among the online trading communities as well as the finance operatives representing the biggest finance entities of the world.

Today, even the European Union is compelled to accept cryptocurrencies and the blockchain market as a reliable yet volatile source of income for the public, and the major economic states such as Germany, Italy, Spain, etc. are also in talks with the European Union Commission and demanding to set up rules and regulations over the cryptocurrency transactions and activities.

Now, when a person who is completely new to the cryptocurrency and blockchain world, wishes to start trading in the market, the most popular and reliable crypto-exchanges they find belong to Asia. China in particular has been considered to be the working ground for many exchanges.

However, even with so much popularity and presence in China, it is still unclear whether the Chinese Soil thinks legalizing cryptocurrency would be a viable decision or not. If we look at the current situation of cryptocurrency in China we would come to know that although it is home to many cryptocurrency exchanges, crypto has been banned in China for many years now. In the year 2017, the Nation’s Central Bank and the People’s Bank of China banned cryptocurrencies as well as the exchanges that supported their transaction flows.

It was also announced by the Shanghai branch of PBoC that they want to get rid of the cryptocurrencies and exchanges from the state of China, claiming the cryptocurrency transactions and such exchanges to be illegal. This resulted in the major local Chinese exchanges such as OKCoin and Huobi to announce that they were no longer proceed with local trading.

However, in July 2019, Chinese court has ruled and recognized bitcoin (BTC) as a digital property and in October 2019, the president of China (XI Jinping) demanded for development programs to be expedited for the cryptocurrency and blockchain sector. However, it is still unclear what the future of cryptocurrency in the Chinese economy would be.

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