What is the current situation of Bitcoin in China? (Are there Bitcoin transactions in China now?)

08/13/2023 03:13 • Blockchain Buzz • 113 views

What is the current situation of Bitcoin in China? According to a report by CoinDesk, blockchain technology in China is developing rapidly. Although there was over 5 million dollars of investment in the first half of 2018, investors are hesitant due to regulatory issues, incomplete related laws, and different attitudes towards ICOs in certain countries and regions.

Despite the increasing number of government-supported projects and more developers joining the industry as policies and regulations develop and spread, Bitcoin is no longer favored by central banks and other financial institutions in China due to the lack of a unified market access mechanism. In late 2017, China officially established Shanghai Bitcoin Exchange (BTCW), a department dedicated to cryptocurrency trading, to promote the establishment of domestic digital asset exchanges. At the beginning of 2019, Bank of China announced the issuance of digital yuan. Shortly after, the price of Bitcoin experienced a major drop, falling from around 34,000 yuan to below 48,000 yuan. Since then, there has been no significant improvement until the end of 2017 when it experienced another sharp rise.

Are there Bitcoin transactions in China now?

In 2017, Bitcoin reached a record high, but it was later rejected by the US Securities and Exchange Commission (SEC). There are now reports that China has started to provide services for trading platforms and exchanges, and some even suspect whether the Chinese government will ban cryptocurrency trading.

According to a report by Cointelegraph, at the end of 2019, major global digital currency markets (such as Facebook, Amazon, Google) experienced a large number of news about the decline in Bitcoin prices. This indicates that despite the recent significant fluctuations in Bitcoin prices, there has not been a large-scale correction in the current environment, and it may trigger new chain reactions. This phenomenon has also caught the attention of regulatory agencies, central banks, and other financial institutions in various countries, especially the China Banking Association, which has a very positive attitude towards Bitcoin.

So, are there exchanges or wallets in China at the current stage where you can buy and sell cryptocurrency assets? According to Article 25 of the Civil Code, “individuals and companies may not engage in any form of cryptocurrency investment activities.” However, because our country’s laws do not recognize it as securities, it is not allowed to “use the issuance of virtual currency for investment”; at the same time, “unless no one sells virtual tokens to the public in exchange for other funds; unless there is a violation of anti-money laundering obligations.”

In fact, at present, there is no national-level support in China to use blockchain technology to solve illegal fundraising problems, so it is difficult to say who the real investors or the true holders of Bitcoin are.

From January 2013 to the beginning of 2019, the Chinese government issued a series of documents announcing a complete ban on ICOs. At the end of March 2020, the People’s Bank of China and six other ministries jointly issued a guidance opinion, proposing to gradually cancel ICO-related enterprise licenses and restrict the development of new businesses.

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What is the current situation of Bitcoin in China? (Are there Bitcoin transactions in China now?)

Are there Bitcoin transactions in China now?

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