Even after the People’s Bank of China declared all crypto transactions illegal, some Chinese crypto holders seem eager to keep buying crypto.
According to a Bloomberg report, while the crackdown could keep newcomers from accessing cryptos, those who already hold cryptos see an opportunity to buy at lower prices.
Stephen, a Shanghai-based investor, told Bloomberg that “These policies are not new to us, so we view them as a buy signal.” According to the source, Bitcoin can be bought via centralized and over the counter exchanges, even as some exchanges begin to shut out users from mainland China.
Those who have not weathered crypto crackdowns, however, might not react the same way as more seasoned crypto investors. “People new to crypto might feel scared. Some of them will quit,” Stephen said.
Although mining and trading cryptos in China is effectively banned, it would be difficult to enforce an outright ban on holding digital assets.
Some crypto investors are finding workarounds because of this, such as the digital wallet online game MetaMask, which is designed to buy and sell NFTs, but can also be used to hold and trade cryptos.
Although Bitcoin initially took a hit after news of China’s decision, it has quickly rebounded, settling into the high $43k range for most of this week.
Some experts even believe that Bitcoin could benefit from Chinese crypto bans as China isolates itself from what could be a major monetary system in the future.
Meanwhile, the fate of crypto in the U.S. is still unclear, as regulators and policy makers struggle to create clear regulatory guidance for the emerging digital asset market. However, as numerous U.S. agencies have declared crypto regulation an urgent and pressing issue in the past few months, it is likely that U.S. regulators will soon provide some clarity.
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