While most of Asia is booming, China continues to remain a barren land for cryptocurrencies. The world’s second-largest economy has kept its doors shut to Bitcoins, though accepting blockchain technology. However, the latest news coming from China seems to be quite encouraging for crypto enthusiasts.
Sa Xiao, Council Member of the Bank of China Law Research Association, recently stated that holding Bitcoin is legal in China. He also added that occasional token exchange between individual and individuals is legal too. Xiao’s claims, however, are contradictory to the policy China has had over crypto markets. The Dragon has been burning crypto companies in the country, forcing many prominent start-ups like Binance to shift their base.
1/ "It is legal to own bitcoins in China" says Sa Xiao, Council Member at Bank of China Law Research Association, cited by The Beijing News. Besides, Xiao considers occasional exchange of bitcoins between individuals and individuals is legal
Source(in CN): https://t.co/lQRaBECcIC
— cnLedger (@cnLedger) May 22, 2019
However, Xiao also stated if a Bitcoin trader causes serious losses to the people, he could face criminal charges and punishment. China has a law in place, which safeguards people’s right of Virtual Properties, which also includes Bitcoin. Nonetheless, strong opposition from President Xi Jinping has also hurt crypto companies.
Xiao’s remarks might sound encouraging, but the ground reality in China is totally different. The establishment is extremely strict in China on crypto trade, which makes life quite difficult for crypto investors. Interestingly, despite the bans and crackdowns, the demand for cryptocurrencies in China has grown over the years.
As a Council Member of the BCLRA, Xiao’s remarks surely carry a lot of weight, but in case of digital assets, given the horrible record in China, it’s quite difficult to come to a positive conclusion.