The Complicated Relation Of Crypto To China

The whole cryptocurrency community was abuzz with excitement when news broke out that a Chinese Court legally recognized bitcoin as digital properties and is protected under Chinese laws.

Some were quick to draw conclusion that the burgeoning asset class is now legal in China or at least the Chinese government is softening its stance on the nascent industry as it is widely considered as one of the harshest jurisdictions for digital currencies.

China is a key player in the crypto industry as it hosts a substantial amount of hashing power that secures the Bitcoin network as well as facilitates 60% of all global trading of the Stablecoin Tether (USDT).

Despite this awesome statistics and the wide Chinese acceptance of blockchain technology that underpins bitcoin, the Chinese crypto industry is virtually non-existent due to regulatory suppression starting on September 2017 when domestic companies banned exchanges and initial coin exchanges.

However there is a regulatory loophole the ban on exchanges and tranding companies does not directly forbid people from exchanging cryptocurrencies among each other.