There is a new report on social media that China may lift its longstanding ban on Bitcoin, which has attracted a high degree of attention from mainstream coin media and the crypto community. Mike Novogratz, the billionaire investor and CEO of Galaxy Digital, raised questions about this on Twitter, but has since quietly deleted his original post.
Mike's post on Sunday, July 14th pointed out that he had heard reports that China was "very likely to lift" the ban on Bitcoin by the end of 2024. He wrote, "If this is true, and this is the second time I've heard this in a few weeks, it's a big deal." He urged the crypto community to provide more insight into this issue.
(Source: Twitter)
He called on the crypto community to provide more insight on this issue.
But when searched again on Tuesday, Mike's post had quietly been deleted.
(Source: Twitter)
Most of the responses to Mike's post questioned the source of the information, and many posters expressed doubt about China's possible 180-degree turn on Bitcoin. Some posters also believed that China never fully banned Bitcoin.
"They have banned it six times, but nothing has happened. Even if they "lift" it multiple times, the same thing will happen," mainstream coin media CoinTelegraph quoted a poster as saying in a comment.
The poster mentioned that China has made several efforts to ban activities related to Bitcoin and other cryptocurrencies, including a cross-departmental crackdown on cryptocurrencies in 2021 and a ban on cryptocurrency exchanges in 2017.
Despite the strict measures, China still maintains a leading position in Bitcoin mining and other crypto-related activities worldwide.
Some online posters remain optimistic about the latest social media reports, especially given recent criticisms of China's crypto regulation methods.
According to reports, Wang Yang, Vice President of Hong Kong University of Technology, questioned the logic of China's ban on cryptocurrency mining at the end of June and urged the government to accept cryptocurrency in geopolitically risky situations.
Yang said that a complete ban on cryptocurrency mining in China is "very unwise," as it would push the business to the United States and increase US tax revenues.
Regarding the latest social media news, many industry insiders have said that China will never allow its citizens to freely trade Bitcoin with local legal tender.
(Source: CoinTelegraph)
As a large Chinese blockchain company, CEO He Yifan of Beijing Hongzao Technology said:" If you mention the lifting of the ban on Bitcoin, that is, China allowing Chinese citizens to buy Bitcoin with RMB in China, it is impossible."
He emphasized:" People who hold this view do not know why China banned Bitcoin and cryptocurrencies."
The CEO also mentioned that attention should be paid to Hong Kong exchanges such as HashKey, which do not allow mainland Chinese citizens as customers.
Mikko Ohtamaa, co-founder of Trading Strategy, agrees with He's position and believes that China's attitude towards Bitcoin contradicts its political agenda.
Ohtamaa further explained:" The rumor of China opening up to cryptocurrencies is unlikely to be true, because it contradicts the agenda of national construction in China."
He added:" China's concern about cryptocurrencies has always been capital flight, further democratization of finance and the ability of middle and low-income groups to flee capital."
A few months ago, some industry observers mistakenly speculated that Hong Kong would launch Bitcoin and Ether spot ETFs in April 2024, which would open up the market to mainland Chinese investors.
CoinTelegraph finally quoted local experts as saying that although ETF issuers have close relationships with mainland China, they cannot provide such risk exposure.
Further reading: "China to lift bitcoin ban in Q4 of 2024" circulated online! The trading market witnessed a "terrifying" scene...