Cryptocurrency investors are growing impatient as Bitcoin has stagnated since its summer lows. However, there are signs that a major shift is on the horizon. Analysts are optimistic about Bitcoin’s performance in the fourth quarter, and recent rumors that China is reconsidering its cryptocurrency ban have sparked interest in the sector.
Here’s what we know about it.
Understanding China’s New Anti-Money Laundering Regulations
China will implement new anti-money laundering (AML) regulations targeting cryptocurrency transactions starting Tuesday. Transactions in virtual assets, including those conducted through cryptocurrency exchanges, will now be classified as money laundering activities. The move, announced by the Supreme People’s Court and the Supreme People’s Procuratorate, marks a significant step forward in China’s regulatory approach.
The new law considers bleached amounts Serious offenses are those that result in losses exceeding 2.5 million yuan (about $343,000) or exceeding 5 million yuan (about $685,000). Convictions can result in imprisonment and substantial fines, with penalties being harsher for more serious cases.
An overview of investor preferences
A recent survey shows that 96.72% of Chinese-speaking crypto investors prefer Binance, with Gate.io and OKX also being popular choices. Additionally, 87.17% of the community receives information about Bitcoin via social media platform X. Despite China’s tough regulatory environment, many users continue to speculate and hold cryptocurrencies full-time. China’s evolving stance on cryptocurrencies could be influenced by the upcoming US elections.
Cryptocurrency Ban in China: Rumors and Speculations
One of the biggest rumors is that China could lift its ban on cryptocurrency trading. If true, it could lead to greater adoption and innovation in the sector. In July, Yifan He, CEO of Red Date Technology, and Mikko Ohtamaa, co-founder of Trading Strategy, expressed doubts that China would allow unrestricted trading of Bitcoin with the local currency, highlighting the government’s policy goals. China had already banned cryptocurrency exchanges in 2017 and intensified its crackdown in 2021.
Global Trends: What Are the Consequences for China?
This policy shift, along with the adoption of cryptocurrencies by other countries such as Russia, suggests a global trend toward more positive regulations for digital currencies. If China returns to the cryptocurrency market, it could lead to significant price changes and increased volatility, opening up new opportunities for investors and tech companies.
Urgent appeal from Justin Sun
Tron founder Justin Sun has urged China to rethink its stance on Bitcoin, especially after Former US President Donald Trump’s recent support Trump’s plan to create a “strategic bitcoin stockpile” is aimed at positioning the United States as a global leader in cryptocurrency, which could lead China to reevaluate its policy on the matter. Sun believes that the competition between China and the United States over Bitcoin policy could ultimately benefit the cryptocurrency industry.
Earlier this year, China allowed some crypto activities in Hong Kong, including ETF launch and retail. If these approvals extend to mainland China, the additional capital flowing into the market could further fuel optimism for the remainder of 2024.
Read also: When will the “terribly boring” period end? When will Bitcoin and altcoins see a surge?
What do you think? Will China lift its ban on cryptocurrencies? Share your predictions.