China’s crackdown signals an oncoming crypto ban, Bobby Lee says

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Bitcoin (BTC) maximalist and Ballet CEO Bobby Lee lately discussed the implications of China’s ongoing crackdown on cryptocurrency. Regardless of the federal government’s assist for a digital renminbi, Lee instructed that Beijing has no real interest in nurturing the cryptocurrency trade. 

Contemplating his collisions with the Chinese language authorities throughout his stint in operating China’s first crypto exchange BTCChina, Lee stated:

“It (China) needs to control (cryptocurrencies) to realize its overarching objective of globalization of digital RMB.”

He additional said that the Chinese language authorities isn’t taking care of the huge crypto exosystem that exists within the area. Stressing on the wait-and-see method, Lee highlighted that 2017 marked the beginning of elevated regulatory scrutiny, and at this tempo, “I do concern that in 4-5 years, the nation would possibly outright ban it (cryptocurrency).”

The federal government’s current ban on crypto mining and associated buying and selling appears to be geared toward deterring residents from getting closely concerned in high-risk investments given the increase in buying and selling volumes. Including to this thought, Lee stated:

“Bitcoin isn’t a direct competitors to the digital yuan. I don’t assume that the cryptocurrency trade will undergo from China’s pullback.” 

Bitcoin’s decentralized world community has led Lee to consider that China’s stance in accepting or banning cryptocurrency is not going to have an effect on the Bitcoin or crypto market in the long term. To assist viewers make sense of Elon Musk’s current transfer in direction of Bitcoin adoption at Tesla, the seasoned entrepreneur hopes to see extra Fortune 500 corporations in 2021 add extra Bitcoin and cryptocurrency holdings to their present portfolio. 

Lee believes that the ultimate straw at this second can be banning cryptocurrency and Bitcoin altogether. However contemplating the involvement of mainstream companies together with ever-increasing authorities initiatives, China continues to limit its in-house crypto enterprise operations whereas permitting people to carry and commerce Bitcoin.

Associated: FTX reduces max leverage from 101x to 20x to encourage ‘responsible trading’

Owing to China’s current crypto rules in opposition to dangerous buying and selling, crypto companies have began taking proactive steps to remain related within the ecosystem. As per CT’s recent report associated to this growth, FTX introduced to restrict its buying and selling leverage to 20x, which was beforehand standing at 101x.