Speculation is rampant in the cryptocurrency community as rumors that China may lift its ban on Bitcoin (BTC) and other cryptocurrencies have resurfaced.
A recent post from Tron founder Justin Sun and other circumstances have fueled these rumors.
Could China Reopen the Doors to Cryptocurrencies? Here’s What We Know
On August 18, Justin Sun shocked the cryptocurrency community with a provocative post on his personal homepage. “What’s the best meme about this?” This news quickly sparked speculation among enthusiasts and industry insiders, and made waves in the market.
Chase, co-founder of the Solana Virtual Machine (SVM) blockchain Molecule, further fueled this speculation. In response to Sun’s post, he pointed out that China implemented a “shadow ban” on cryptocurrencies many years ago.
“Today, users can freely register accounts on popular exchanges such as Binance or Bybit. Therefore, whales will always exist, but there will be an influx of individual users who do not want to step into the gray area. “The problem is the scale of the influx of users, and more importantly Yes, given regulatory resistance, such a move could lead to innovation. ” Chase said.
Read more: Cryptocurrency regulation: What are the pros and cons?
Signs of a Potential Policy Shift in China
What’s even more interesting is that the recent large-scale transactions in Plus Token-related wallets have attracted the attention of the community. Approximately $450 million worth of Ethereum (ETH) has been moved from wallets.
PlusToken is one of the largest cryptocurrency Ponzi schemes in China. In 2020, Chinese authorities seized approximately $4 billion worth of various tokens, including Ethereum, Bitcoin, Dogecoin (DOGE), and Ripple (XRP).
The move has led many to suspect that China may be preparing for a policy shift that could involve using the assets for strategic reserves or other government purposes.
Geopolitical Implications and Competition
Former U.S. President Trump’s recent comments about Bitcoin mining have added another layer to the geopolitical narrative. Trump has stated that he intends to increase Bitcoin mining in the United States if re-elected to prevent China from gaining dominance in the field.
“If we don’t do it, China will start mining, and China may do it, or someone else may do it, but China will probably do it. China is very interested in that. […] They are quite advanced in this area,” Trump said.
In line with these developments, major Chinese companies such as Tencent and Alibaba are also increasingly involved in blockchain development. Many believe the move paves the way for a more crypto-friendly environment in China.
Remaining Concerns and Future Outlook
Some commentators on Weibo expressed skepticism, noting that the Chinese government’s concerns about Bitcoin remain valid. Issues such as excessive energy consumption, financial speculation, and the risk of illegal activities were cited as reasons for the initial ban.
These rumors have not been confirmed, but if China lifts its Bitcoin ban, the impact could be significant. There are reports that mainland Chinese investors continue to trade cryptocurrencies despite the ban, indicating a potential shift in policy.
Learn more: How to buy Bitcoin (BTC) and everything you need to know
