In order to help Chinese citizens stay clear of high-risk investments, there has been regulatory pressure on crypto firms in China, however, most crypto firms globally are now putting measures in place to remain relevant.
Bobby Lee, a Bitcoin (BTC) maximalist and Ballet CEO, recently acknowledged the ramifications of China’s ongoing cryptocurrency crackdown.
Despite the government’s backing for a digital yuan, Lee claims Beijing is uninterested in fostering the cryptocurrency industry.
In light of his run-ins with the Chinese authorities while establishing China’s first cryptocurrency exchange, BTCChina, Lee said:
“It (China) wants to regulate (cryptocurrencies) to achieve its overarching goal of globalization of digital RMB.”
He went on to say that the Chinese government isn’t paying attention to the region’s large crypto exosystem. Lee emphasized the wait-and-see approach, noting that greater regulatory scrutiny began in 2017, and that at this rate, “I do fear that the country would outright outlaw it (cryptocurrency) in 4–5 years.”
Given the surge in trade volumes, the government’s recent prohibition on crypto mining and related trading appears to be targeted at discouraging individuals from becoming significantly involved in high-risk ventures. Lee added to this idea by saying:
“Bitcoin is not a direct competition to the digital yuan. I don’t think that the cryptocurrency industry will suffer from China’s pullback.”
Because of Bitcoin’s decentralized worldwide network, Lee believes that China’s stance on accepting or prohibiting cryptocurrencies will have no long-term impact on the Bitcoin and crypto markets.
To explain Elon Musk’s recent step toward Bitcoin adoption at Tesla, the veteran entrepreneur wishes to see more Fortune 500 firms add more Bitcoin and cryptocurrency assets to their present portfolios in 2021.
At this point, Lee believes that outright prohibition of cryptocurrency and Bitcoin would be the ultimate straw. However, in light of the increased engagement of mainstream enterprises and government efforts, China continues to restrict its in-house crypto company operations while allowing individuals to retain and trade Bitcoin.
Because of China’s latest crypto legislation prohibiting dangerous trading, crypto companies have begun to take aggressive measures to remain relevant in the ecosystem.