Nikolas Sargeant
Cryptocurrency early adopter and long-time commentator Bobby Lee claims that we’re about to see an increase of regulatory pressure on cryptocurrency in China.
Long-term cryptocurrency advocate Bobby Lee just reported that Beijing is distancing itself from digital currency and will look to cease crypto transactions outright. The Market dipped to a low for the year back in April, when China announced a ban on crypto mining and tightened restrictions related to crypto trade business in the region and increased regulations on existing trading units in the country. Although heavily opposed by many crypto enthusiasts in China, the government has cracked down on cryptocurrency eyeing a strict crackdown across the nation.
What is China’s plan?
For those who don’t reside in China, it can be difficult to get a clear message as to what is happening. While the message from the government is fairly transparent, there hasn’t been much conversation regarding Bitcoin since the initial ban was mentioned in April of this year. Lee went on to comment regarding the fact China takes no interest in pursuing a sustainable solution for crypto mining, instead choosing to increase regulatory pressure and impose new laws to prevent the trading of digital currencies.
The government looks to be pursuing their initial plan of an outright ban, with no interest in any kind of plan to evolve or expand their current crypto mining community. China boasts the highest figures of crypto miners in the world and this ban will certainly affect the crypto market.
Lee commented further on how he felt that although China’s crypto ban does seem to be set in stone, there are unlikely to be negative effects on the overall crypto market index. China stands independent of the West and its ideals, so China moving away from the DeFi space would only encourage new users and bolster the overall evaluation of the crypto industry. The Bitcoin mining communities have contributed a lot to the success of Bitcoin, but there is no relationship between China’s Yuan and other digital assets.
What matters for crypto
Bobby Lee’s comments were surprisingly optimistic. Although the impending crackdown in China doesn’t reflect this, it’s not China that is going to make or break cryptocurrency as a mainstream payment method. Industry leaders like Elon Musk and Jeff Bezos committing to cryptocurrency are what really count, as we saw only today Amazon looking to add Bitcoin and other digital currencies to their list of payment methods.
These are the faces of the industry and the ones that control the tempo of society. If users who are unexposed to crypto, suddenly start seeing Bitcoin as a payment option on their Amazon account, it will force these individuals to ask questions and learn more about something that has up to that point been either uninteresting or out of purview entirely.
China’s aggressive move to ban crypto transactions will only cause the nation to fall behind, as other countries adopt digital currencies. The Chinese Yuan doesn’t offer the same value as DeFi. With Chinese cryptocurrency miners now forced to find new professions, leading crypto companies are also seeing a reduction in output in the region—the likes of FTX have reduced their operations in China by 70%.
