China is notorious for its unfriendly stance towards Bitcoin and cryptocurrencies after deciding to ban all related activities, including cryptocurrency mining, declaring these transactions as illegal. illegal in September 2021.
While exchanges and influencers suffered a crackdown under the ban, this trend may soon change drastically.
Cryptocurrency journalist Wu Blockchain recently wrote on X that Chinese scholars have acknowledged Bitcoin's property properties, believing that Bitcoin and digital currencies occupy a relatively small space in terms of legal regulation. domestic management. They came to the following general conclusion about Bitcoin:
“Bitcoin is not legal but it is not completely banned either. BTC is also not pirated. In fact, Bitcoin is truly tradable and has economic value so it can be recognized as an asset.”
These comments have fueled speculation that the Bitcoin ban in China may soon be lifted and could change the way Bitcoin is viewed both inside and outside of China.
Before the ban in 2021, China had a large market share of Bitcoin hashrate and the market depended on liquidation coming from the country. However, the industry has long since corrected, a reboot in Bitcoin sentiment and the possibility of transaction re-approvals could further add to BTC's growth prospects.
The launch of a spot Bitcoin ETF in Hong Kong could Vai as an ideal stop for Chinese investors while they wait for the regulatory landscape in the country to change. Although there is a very delicate line here, the observations of Chinese scholars could set a precedent that opens a new era of application.
It is unclear whether the scholars' comments will be enough to change the stance of regulatory agencies; however, the market is optimistic about a major change to China's Bitcoin ban.
Although the first week of trading for Hong Kong spot ETFs was tepid compared to their U.S. counterparts, it has become a key discussion point as it is unclear whether mainland Chinese investors will can access these ETFs or not.
Richard Byworth, managing partner at SyzCapital and BTC investor, has sparked rumors with recent comments suggesting that mainland Chinese investors may soon gain access to Hong Kong ETFs.
“I just returned from Hong Kong. There are rumors that ETFs may be added to Stock Connect. The implications of this are huge (basically it means mainland investors can buy ETFs).”
Stock Connect allows qualified investors from one market to access qualified stocks in another market with a preset quota.
Stock Connect Shenzhen-Hong Kong, a cross-border investment route, connects the Shenzhen Stock Exchange and the Hong Kong Stock Exchange.
Investors in one market can trade stocks in the other market through local brokers and clearinghouses. The Stock Connect program covers a wide range of stocks but is subject to daily quotas.
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Bitcoin Magazine
