China’s crackdown signals an oncoming crypto ban, Bobby Lee says

Bitcoin (BTC) maximalist and Ballet CEO Bobby Lee lately mentioned the implications of China’s ongoing crackdown on cryptocurrency. Regardless of the federal government’s assist for a digital renminbi, Lee advised that Beijing has no real interest in nurturing the cryptocurrency trade. 

Contemplating his collisions with the Chinese language authorities throughout his stint in operating China’s first crypto trade BTCChina, Lee mentioned:

“It (China) desires to manage (cryptocurrencies) to attain its overarching purpose of globalization of digital RMB.”

He additional said that the Chinese language authorities is just not taking care of the huge crypto exosystem that exists within the area. Stressing on the wait-and-see strategy, Lee highlighted that 2017 marked the beginning of elevated regulatory scrutiny, and at this tempo, “I do concern that in 4-5 years, the nation may outright ban it (cryptocurrency).”

The federal government’s current ban on crypto mining and associated buying and selling appears to be aimed toward deterring residents from getting closely concerned in high-risk investments given the increase in buying and selling volumes. Including to this thought, Lee mentioned:

“Bitcoin is just not a direct competitors to the digital yuan. I don’t suppose that the cryptocurrency trade will undergo from China’s pullback.” 

Bitcoin’s decentralized international community has led Lee to imagine that China’s stance in accepting or banning cryptocurrency won’t have an effect on the Bitcoin or crypto market in the long term. To assist viewers make sense of Elon Musk’s current transfer in the direction of Bitcoin adoption at Tesla, the seasoned entrepreneur hopes to see extra Fortune 500 corporations in 2021 add extra Bitcoin and cryptocurrency holdings to their present portfolio. 

Lee believes that the ultimate straw at this second can be banning cryptocurrency and Bitcoin altogether. However contemplating the involvement of mainstream companies together with ever-increasing authorities initiatives, China continues to limit its in-house crypto enterprise operations whereas permitting people to carry and commerce Bitcoin.

Associated: FTX reduces max leverage from 101x to 20x to encourage ‘accountable buying and selling’

Owing to China’s current crypto laws in opposition to dangerous buying and selling, crypto companies have began taking proactive steps to remain related within the ecosystem. As per CT’s current report associated to this improvement, FTX introduced to restrict its buying and selling leverage to 20x, which was beforehand standing at 101x.