China reiterates bearish sentiments against Bitcoin
PBOC ensures that Chinse residents cannot trade Bitcoin ETFs
In a recent report, a local newspaper Economic Daily, which is also owned by the Chinese government, has reiterated its position on the cryptocurrency industry, especially the leading cryptocurrency Bitcoin.
In the recent article published on the website, the current state of the crypto market was outlined, and Bitcoin’s current bullish performance was emphasized. Noting the recent approval of a handful of Bitcoin Spot ETFs, the publication explained that the current bullish uptrend can be credited to the influx of institutional players.
The publication particularly especially cautioned its readers against Bitcoin, stating that Bitcoin is still a high-risk asset, despite its current bull rally. Investors must keep a close eye on Bitcoin and Bitcoin-centered products like ETFs, as the asset is yet to go mainstream, the publication added.
While the SEC’s approval of multiple Bitcoin Spot ETFs has elicited positive comments from Bitcoin proponents who believe that adoption of Bitcoin in the U.S. could be heightened in the long-term, the publication maintained that China still stands behind its ban on Bitcoin trading. Responding to concerned Chinese residents who are curious to know if Chinese mainland residents can purchase ETFs, the publication wrote;
“Some people are also concerned that if Bitcoin ETFs are publicly traded, can residents in mainland China buy them? Our country has always implemented strict supervision on cryptocurrencies such as Bitcoin.”
Bearish sentiments fail to pull Bitcoin below $60,000
Back in September of 2021, the People’s Bank of China issued a “Notice on Further Preventing and Dealing with Speculation Risks of Virtual Currency Transactions. The notice was also backed by the Central Cyberspace Administration the Supreme People’s Court and other departments.
The notice stipulated that virtual currencies and businesses related to digital assets are illegal financial activities in the country. In addition to this, the provision of services by abroad-based cryptocurrency exchanges to Chinese residents in any form is also branded as illegal financial activity. Xiao Sa, a Chinese-based lawyer asserted that the notice makes it impossible for Bitcoin ETFs to be traded in the country.
“This means that overseas Bitcoin ETF dealers cannot sell related financial products to Chinese citizens, and residents of mainland my country are not allowed to directly use related tools to directly purchase related financial products in the mainland.” He explained.
Yu Jianing, the co-chairman of the Blockchain Special Committee of China Communications Association also highlighted the uncertainty that Bitcoin faces on a global scale due to lack of regulation, as a factor for China’s bearish position.
Despite China’s strict position on Bitcoin, the apex cryptocurrency cy is still experiencing a bullish rally. Bitcoin has now stayed above $60,000 for almost a week. At report time, Bitcoin was trading at $65,328, with daily gains going up above 27%.
