Some positive news out today suggests that officials in China may start to loosen their grip on cryptocurrency activity within the country.
A full report from the Asia Times claims that messages from within China are starting to show that cryptocurrency could take off in the area. See the full article for yourself, here- http://www.atimes.com/article/messages-china-show-digital-currency-taking-off/
According to the Asia Times, Yi Gang, a Governor for the People’s Bank of China has said that whilst authorities will continue to supervise cryptocurrencies, the bank wishes to explore a new way for digital currency to play a more active role in the mainstream economy.
This, occurred at the annual Boao Forum for Asia, a yearly event which places the brains of governors, business leaders and academics together to engage in open debate within economics and politics.
At the moment, China have introduced bans on a number of crypto-related activities, such as ICO’s and actual trading activities, however no bans have yet been introduced on mining activity, meaning China still stands as one of the biggest cryptocurrency mines in the world.
According to the Asia Times, Yang Tao, the Assistant Director at the Institute of Finance has argued that it is essentially impossible to totally ban cryptocurrency. Tao argues that yes, money laundering and market manipulation fraud is a huge risk within cryptocurrencies, but overall the existing financial system in China will struggle to evolve without the integration of cryptocurrencies and that cryptocurrencies are a ‘valuable experiment’ that should be further understood.
This is a really positive bit of news for the cryptocurrency industry in China and highlights that authorities there are keen to expand into the crypto-universe at their own accord, this isn’t necessarily a bad thing. They have justified fears about the risk that cryptocurrency trading can pose on both the economy and their citizens, but perhaps with some further experimentation and expansion, the Chinese authorities can adopt a heavily regulated crypto-trading community, or even follow their neighbours in Japan and spearhead a clear, pro-cryptocurrency movement in the area.