Last month in a tweet on X platform, Galaxy Digital CEO Mike Novogratz also said that China might consider unbanning Bitcoin by late 2024.
Tron founder Justin Sun recently added fuel to the ongoing rumor that China is going to lift the ban on cryptocurrencies. On Sunday, August 18, Sun shared a tweet stating “China unbans crypto. What’s the best meme for this? ”
China 🇨🇳 unbans crypto. What’s the best meme for this?
— H.E. Justin Sun 孙宇晨(hiring) (@justinsuntron) August 18, 2024
This tweet was enough to spark a conversation about China unbanning crypto, however, there’s no official confirmation backing this. Back in 2018, China introduced an absolute ban on crypto and Bitcoin trading activities. Later in 2021, the country which was once the home to the world’s largest crypto miners, also introduced the Bitcoin mining ban.
However, amid the rising penetration of crypto into the global financial market, China is once again having another look. The Chinese administration is reportedly using Hong Kong as a proxy to spur up crypto activity once again. Over the last year and so, Hong Kong regulators have been on their toes introducing crypto regulations in the market while introducing regulated investment products like Bitcoin ETF and Ethereum ETF.
Amid the strong push from the Chinese administration, Hong Kong seems to become the crypto capital of the Asia region while competing with other big markets like South Korea and Japan.
Will China Lift Crypto Ban in 2024?
The rumor of China unbanning crypto hasn’t come for the first time. Last month in a tweet on X platform, Galaxy Digital CEO Mike Novogratz said that China might consider unbanning Bitcoin by late 2024. “If this is true, and it’s the second time I’ve heard in weeks, it’s a huge deal,” Novogratz said.
Although Novogratz deleted the tweet later, his statement was also met with skepticism. The recurring cycle of speculation has caused people to take these rumors less seriously. Some suggest that even if China were to adjust its stance, it would likely be a gradual shift rather than an abrupt reversal.
China would be closely watching the developments in the United States where both the parties – Republicans and Democrats – have been warming up to the crypto market. Former President Donald Trump has also hinted at holding Bitcoin as a reserve asset for the US and also issuing crypto cheques to reduce the $35 trillion US debt.
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