In recent months, China has been increasing its regulatory pressure on cryptocurrency-related companies to ensure that Chinese citizens stay clear of high-risk investments.
Bobby Lee, a Bitcoin (BTC) maximalist and Ballet CEO, recently discussed the impacts of China’s continuing crackdown on crypto. Despite the government’s support for a digital renminbi, Lee said that Beijing does not have any interest in nurturing the crypto sector.
Taking into consideration his confrontation with the Chinese government during his stint in running China’s pioneer crypto exchange BTCChina, Lee stated:
“It (China) wants to regulate (cryptocurrencies) to achieve its overarching goal of globalization of digital RMB.”
He further said that the Chinese government is not currently looking after the wider crypto exosystem existing in the Asian region. Insisting on the wait-and-see approach, Lee said that 2017 marked the start of increased regulatory scrutiny, and at this pace:
I do fear that in 4-5 years, the country might outright ban it (cryptocurrency).”
The government’s recent ban on cryptocurrency mining and related trading activities appears to be targeted at deterring the citizens from getting majorly involved in high-risk investments due to the current boom in trading volumes. Adding to this idea, Lee commented:
“Bitcoin is not a direct competition to the digital yuan. I don’t think that the cryptocurrency industry will suffer from China’s pullback.”
Bitcoin’s decentralized global network appears to have now pushed Lee to think that China’s stand in accepting or banning crypto will not affect the BTC or crypto market in the long term. To help the participants and viewers to make sense of Elon Musk’s recent move toward BTC adoption at Tesla, the experienced entrepreneur now hopes to see more Fortune 500 firms this year add more BTC and crypto holdings to their portfolios for diversification purposes.
Lee is convinced that the final straw at the moment would be a total ban on crypto and bitcoin. However, considering the involvement of several mainstream businesses along with growing government initiatives, China continues to limit its in-house crypto activities and business operations while letting individuals hold and trade their bitcoin.
Owing to the recent crypto regulations established against risky trading in China, the participating crypto businesses have started to implement proactive measures to remain relevant in the ecosystem. According to CT’s recent report that is related to the development, FTX said that it will limit its trading leverage to 20x, which previously stood at 101x.
