Samson Mow of Blockstream has noted that mainstream financial media outlets in China are reporting about Bitcoin and crypto despite a nationwide commercial ban. Is the Chinese government finally softening on crypto or what?
Is crypto fever finally setting in?
China’s authoritarian government may be softening their stance on crypto, since President Xi Jinping came out publicly in support of blockchain technology. China has had a commercial ban in place barring exchanges, and financial institutions form engaging in crypto transactions, as well as shutting down the WeChat accounts of several crypto-related news outlets. The additional ban on crypto news outlets was allegedly to prevent scam ICO’s being advertised to Chinese citizens.
China’s ban has been in place since 2018 and since it was enacted Chinese traders have used various methods to get around the crypto ban. China’s crypto enthusiasts and traders have used social media apps like wechat to trade p2p privately in chat rooms, although the activity has been curtailed in large part by authorities.
Samson Mow, CSO of Blockstream and long-time Bitcoin Twitter personality, has recently commented on what seems to be a reversal in China’s policy towards cryptocurrency in official financial media outlets.
Securities Times China just posted an article about #Bitcoin jumping 45% this year and hitting $10,000. This is a traditional financial media outlet with massive reach. #China #Bullish ? pic.twitter.com/AJu2MOiQA8
— Samson Mow (@Excellion) February 10, 2020
China’s Securities Times newspaper published an article about Bitcoin’s 45% gains this year and achieving a new yearly high of $10,200. This is a mainstream Chinese publication, with a very wide audience.
Considering the attitudes Chinese authorities have had in the past towards both Bitcoin and mining, it’s rather surprising to see an article like this, especially considering the state control over both the economy and media.
China’s past stance towards crypto has been mixed signals
China shutdown ICOs, in 2017 chilling the climate towards the decentralized funding frenzy that sparked the crypto bull run of 2017 and introduced the crypto winter.
This ban kicked off a fury of regulation with Japan, S. Korea, Singapore, Malta, Switzerland and a host of other nations passing ICO friendly tax laws or regulations to entice crypto projects to come start doing business in a friendlier climate.
China then proposed a ban on Bitcoin mining which is extremely significant because the largest Bitcoin mining pools with the most hash rate, are based in China. The mere mention of a possible ban was enough to spook investors.
China has had some of the largest crypto projects and companies, and China’s government even releases its own blockchain and crypto rankings list similar to the Weiss ratings. Recently, a Chinese court ruled that cryptocurrency is legal and is classified as property under Chinese law, adding protection for Chinese crypto holders.
Could it be that China is changing its mind on crypto? China’s central bank is leading the way towards a state backed crypto currency, will they impose a full ban on public blockchains or is this beginning of a new approach towards blockchain by Chinese authorities?.
What do you think of Chinese financial media outlets running pro crypto-news?
Images via Shutterstock, Twitter @Excellion