Chinese Cryptocurrency
Cryptocurrencies have become increasingly popular in China over the past few years, with a growing number of Chinese citizens using digital currencies to pay for goods and services. Although China’s government has issued warnings against trading cryptocurrencies domestically, many experts believe that it is only a matter of time before official regulations are put into place. This article will discuss the current state of cryptocurrency use in China and what may be expected in terms of regulation going forward.
History Of Cryptocurrency In China
The first recorded instance of cryptocurrency usage by Chinese citizens was back in 2013 when Bitcoin began gaining traction among tech-savvy groups within the country. After this initial spike in popularity around 2014, regulatory bodies such as the People’s Bank of China (PBOC) began to issue warnings about potential risks associated with investing and trading these digital assets . As a result, several exchanges were forced to close their doors or cease operations within mainland territories during 2017 – 2018; however , some managed to survive by relocating their business overseas .
Current State Of Affairs
Following an extensive period where crypto activity was heavily suppressed , more recently there has been evidence that suggests authorities are beginning to warm up towards blockchain technology . For example , President Xi Jinping made comments praising its efficiency while high ranking officials from PBOC have hinted at launching their own central bank backed virtual currency soon . Moreover , certain cities like Shenzhen have created special economic zones dedicated specifically for developing projects related to distributed ledger systems (DLT).
Potential Regulatory Climate Going Forward
Despite recent progress regarding acceptance amongst senior decision makers within Beijing circles, much remains uncertain as far as exact details concerning future legislation goes ; however one thing is clear: any formality instituting regulation must comply with existing laws already on record i.e no conflicting rules should arise between local jurisdictions & central institutions overseeing finance/commerce etc … It would also appear likely that KYC processes along side other anti money laundering measures could well be imposed upon users so they can continue engaging via legal means once enforcement takes effect sometime next year 2021 most probably..
