Crypto News | Chinese cryptocurrency ban not effective

It’s a well-known fact that, when it comes to countries and cryptocurrencies, it is always a love-hate relationship. Between China and cryptocurrencies, however, since September 2017, it has been a hate-hate relationship. The Chinese cryptocurrency ban was initially aimed at ICOs, followed by a crackdown on mining, and finally, a complete ban on trading digital assets and fiat currencies. The government is specifically looking to reduce or completely eliminate risk from financial markets, which seems like a long shot to many. However, over-the-counter trading is still allowed, but only between different cryptocurrencies – no fiats involved. The biggest Chinese exchanges, Huobi and OKCoin, have already adapted wonderfully with their new platforms, Huobi Pro and OKEx. The platforms are for crypto only, and they are already among the top 10 exchanges by trading volume globally. The CEOs of these companies are convinced that the ban will be lifted very soon. Nevertheless, they are not taking any risks. Both companies have increased their number of employees by several hundred and expanded into Hong Kong, South Korea and the US.

And while China is shunning crypto, Taiwan, China’s neighbor, is warming up to the idea of blockchain technology and distributed ledgers. The new governor of the country’s central bank said at his inauguration ceremony that his agency will be focusing on reshaping the country’s financial system. 

Taiwan’s timing is certainly impeccable. Trading cryptocurrencies and transferring funds has now become easier and more affordable than ever. A popular app for trading stocks, Robin hood, has released a new crypto trading platform. Post launch, 16 cryptos will be available for trading – without any fees whatsoever. At the same time, the guy who wasted 10,000 BTC on pizzas back in 2010, bought two pizzas again to test the Lightning Network. And it worked flawlessly. Zero-confirmation, and the transaction cost only 6 cents, down from $55 last year.

With all that in mind, is Huobi and OKCoin’s faith that the Chinese cryptocurrency ban will be lifted justified? Not likely. The country has already been testing its own cryptocurrency. China wants digital assets to be issued by a central bank in China for the first time – with the government in full control. And here we see the dark side of governments and cryptocurrencies – when the relationship is kind of all love-love on the one side, but all hate-hate on the other. We can already see the outcomes of that with Venezuela and the petro.


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Author: Max Rothstein

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