China reverses opposition to Bitcoin and hints at regulation

The Chinese government media outlet Global Times suggested that the State Council has reversed their opposition to cryptocurrencies stating that “just saying no to Bitcoin” is no longer sensible and that instead they should “embrace the new technology,” and instead introduce regulations.

“There’s an increasing belief that just saying no to Bitcoin won’t be the eventual solution to the cryptocurrency issue. A more fundamental approach would be to embrace the new technology without putting the country’s financial system at stake,” the article reads.

“Fencing off Bitcoin exchanges can’t effectively end Bitcoin trade, and fears of a Bitcoin bubble could leave China behind in the digital currency revolution,” the Global Times columnist Xiao Xin added. “Instead, the country should consider rules and regulations that can ensure the technological advance works in the economy’s favour.”

Xin reiterated that, “It’s time for China to lay the regulatory groundwork for its rise as a future digital currency trendsetter.” He highlighted the criminal probe into Bitcoin price manipulation launched late last month by the US Department of Justice saying it is an “indication of ratcheted-up US scrutiny of Bitcoin trading, surely uncovered a market rife with misconduct. But it also reflects a more proactive stance the US takes in regulating the cryptocurrency market, which over time will contribute to digital currency sophistication in the world’s largest economy.”

China will apparently follow the United States, South Korea and Japan in introducing regulations to cryptocurrency instead of banning it as was their original stance. Last week, the Chinese government ordered local and financial authorities to speed up blockchain technology.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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