On July 14, Galaxy Digital CEO Mike Novogratz shared on the platform X that he had heard reports suggesting that China is “likely to unban” Bitcoin by the end of 2024. Novogratz stated that if this is true, it would be a significant turning point and urged the community to provide more information.
China Has Repeatedly “Banned” Bitcoin
Most responses in Novogratz’s X thread questioned the source of the information. Many people expressed doubts about China’s potential shift in stance on Bitcoin. Some pointed out that China has never actually fully banned Bitcoin.
“They’ve ‘banned’ Bitcoin about six times, and nothing has happened. The same will happen when they ‘unban’ it,” one comment stated.
The commenter referred to China’s efforts to prohibit activities related to Bitcoin and other cryptocurrencies, including a crackdown in 2021 and a ban on crypto exchanges in 2017.
Despite strict measures, China has remained a global leader in Bitcoin mining and other crypto activities.
Some Industry Observers Remain Optimistic About China’s Potential Shift on Bitcoin
Some people remain optimistic about the latest reports on social media, especially after recent criticisms of China’s approach to crypto regulation.
At the end of June, Professor Wang Yang from the Hong Kong University of Science and Technology questioned China’s ban on crypto mining, urging the government to embrace cryptocurrencies amid geopolitical risks.
According to the professor, completely banning crypto mining in China was “very unwise” as it drove related businesses to the United States and contributed to U.S. tax revenue.
Related: China Bans Cryptocurrency Mining in Energy Overhaul
China “Unlikely” to Have Motivation to Open Up to Cryptocurrencies
In response to the latest social media reports, many industry figures remain confident that China will never allow its citizens to freely trade Bitcoin using the local currency.
Yifan He, CEO of blockchain company Red Date Technology, asserted, “If ‘unban Bitcoin’ means that China would allow citizens to buy Bitcoin with renminbi from within China, it is not going to happen.”
The CEO also mentioned that people should pay attention to Hong Kong-based exchanges like HashKey, which do not allow mainland Chinese citizens as customers.
Mikko Ohtamaa, co-founder of algorithmic investment protocol Trading Strategy, also agreed that China’s change of stance on Bitcoin would go against the government’s political agenda.
He emphasized, “China’s concern with cryptocurrencies has always been capital flight. Cryptocurrencies further democratize finance and enable the middle and lower-income classes to move capital abroad.”
According to local experts, ETF issuers cannot provide such access despite having close ties with mainland China.
