Recent rumors suggest China might lift its long-standing Bitcoin ban by late 2024.
However, the crypto community remains skeptical mainly about this possibility.
Mike Novogratz, CEO of Galaxy Digital, shared these reports on social media, sparking discussion.
Many experts doubt China’s motivation to reverse its stance on cryptocurrencies.
Community Reaction to Unban Rumors
The crypto community responded with caution to Novogratz’s post.
Also, many questioned the source of the information and its reliability.
Further, some pointed out that China has “banned” Bitcoin multiple times in the past.
Mike Novogratz / Source: X Post
“They have banned it like six times, and nothing has happened. The same thing will happen when they ‘un-ban’ it multiple times,” says the X user.
Despite these bans, China has remained a significant player in Bitcoin mining and other crypto activities.
Some observers noted that China’s approach to crypto has faced recent criticism.
A Hong Kong University professor questioned the logic behind China’s crypto mining ban.
He argued that the ban drove businesses to the United States, contributing to U.S. tax income.
Expert Opinions on China’s Crypto Stance
Industry figures expressed doubt about China allowing free Bitcoin trading with the renminbi.
Moreover, Yifan He, CEO of Red Date Technology, stated this scenario is unlikely to happen.
In the CEO’s words, “If you refer to ‘unban Bitcoin’ as China would allow Chinese citizens to buy Bitcoin with China’s renminbi from inside China, it is not going to happen, period.”
Also, he emphasized that those suggesting it don’t understand China’s reasons for banning cryptocurrencies.
Similarly, Mikko Ohtamaa, co-founder of Trading Strategy, agreed with this perspective.
Additionally, he argued that reversing the Bitcoin ban would go against China’s political agenda.
Ohtamaa pointed out that China’s main concern with crypto has always been capital flight.
The experts highlighted that cryptocurrencies democratize finance and enable capital movement for all income classes.
In all, this aspect conflicts with China’s desire for financial control.
Also, Ohtamaa noted that Hong Kong’s recent launch of Bitcoin ETFs has not changed mainland China’s stance.
Implications for the Global Crypto Market Amid China Ban-Lift Rumors
If China were to lift its Bitcoin ban, it could significantly impact the global crypto market.
However, most experts believe this scenario is improbable.
Despite multiple bans, China continues to influence the global crypto landscape.
Its large population and economic power make it a potentially massive cryptocurrency market. So, the crypto community will likely continue to monitor any developments in China’s stance.
However, for now, most remain unconvinced of any imminent policy changes.