The People’s Bank of China (PBoC) ruled cryptocurrency transactions unlawful last week, marking yet another significant step forward in the country’s ongoing crackdown on cryptocurrencies.
Despite this, local investors appear to be unaffected by the decision, as they continue to put their money on the line.
In an interview with Bloomberg, some of the local investors expressed their delight that the change had resulted in a new buying opportunity.
In an interview with CNBC, Bobby Lee, the chief executive officer of crypto wallet company Ballet Global Inc., stated that the crackdown hasn’t been as severe as many had anticipated. “I purchased some when the price dropped. “A gloomy cloud has been lifted,” he said.
Other local cryptocurrency investors from China expressed similar sentiments. As Stephen, a crypto investor located in Shanghai, put it: “These policies are nothing new to us, so we consider them to be a buy signal.” He went on to say that he purchased the Bitcoin decline through over-the-counter (OTC) counters.
He did, however, mention that new investors may find it difficult to deal with the situation. “Those who are new to cryptocurrency may be intimidated. “Some of them are going to quit,” Stephen predicted.
Long-term investors find workarounds to the current situation
Chinese investors have stated that such actions will not deter participants who have been involved in the cryptocurrency space for a long period of time.
These players are generally successful in finding workarounds. The volume of cryptocurrency trading on decentralized exchanges (DEXs) such as dYdX and Uniswap increased considerably following the China ban, as we previously reported.
In an interview with Bloomberg, Stephen stated that while the Chinese government has restricted trade and mining of Bitcoin and other digital currencies, it would not impose an absolute ban on keeping them because to the difficulty of enforcing such a decision.
“The government is intelligent,” he asserted. “They will not issue a policy that they will not be able to implement.”
While there was a knee-jerk reaction following the China ban, whales and institutional investors such as JPMorgan were quick to take advantage of the price decline.
