A Bank of China’s Law Research Association council member has explained that Chinese are still allowed to own Bitcoin despite the ban on cryptocurrency trading. It is great news in the сrypto world, a significant step forward in the mainstream adoption of this digital asset.
Contrary to the common belief that BTC and other cryptocurrencies are illegal since China has instituted a crypto ban, the council member Sa Xiao has announced that Chinese people can still legally own BTC.
Why is a Bank of China official saying that it is legal to own Bitcoin in China?
The answer lies in the type of ban that China instituted. When the Chinese government announced the ban, it stated that crypto trading would no longer be allowed. Technically, it still left the door open for ownership of the crypto. It means that a person can acquire a BTC and own it in China, but the actual trading aspect is banned. China had placed the crypto trading ban to protect its citizens from losing their money to the market and ICO scammers, as the ban came at a time when there were cases of people defrauded by ICO scammers.
Although Xiao confirmed that it is legal to own BTC in China, he also warned that people should not attempt to operate a BTC trading exchange to take advantage of the legal ownership status for BTC. He noted that there will be severe consequences for anyone found violating the warning since crypto businesses are still considered illegal business practices.
China against crypto
Although the Bank of China stated that owing BTC is still legal, at least for now, the country’s government maintains the ban on cryptocurrency trading and cryptocurrency mining instituted two years ago. The Chinese government adopted its aggressive opinion about cryptocurrency mining and trading activities because it does not offer growth benefits to the country. The current outlook indicates that the Chinese government will not reverse its decision on crypto trading today.
Future Prospects
The announcement about Bitcoin being legal to own in China comes at a time crypto market is experiencing a surge in prices. It is mainly due to the public interest in the cryptocurrency market, which makes the market trend to turn bullish.
Analysts believe that Chinese investors who access the market through over-the-counter (OTC) exchange services may have contributed to the current bull run. It is partly due to the ongoing trade war between China and the US.
Little by little, all the signs are pointing to a renewed bull market and most of all mainstream acceptance of BTC and other cryptocurrencies.
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