Bitcoin Forum

We all know China banned Bitcoin and altcoin trading first. Next they went ahead and banned miners. After that they rolled out their own digital Yuan. Which I am afraid did not succed as expected by CCP. Now suddenly they are allowing HK to go ahead with crypto and become a hub of Bitcoin as well as Altcoin economy. The biggest bank in HK a few days back declared that they will support crypto.

I mean what do you guys think is going around with this decision of China. As per my understanding HK has become a shadow control colony of China. Which was not what they had promised to UK. This situation could become a problem for USA and it's allies in the future. Already we can see big companies (banks) in the US are now buying shares of Microstrategy, whereby they are indirectly investing in Bitcoin. As they now realize the potential of Bitcoin.

Does that mean China is utilizing this negative situation in the US on crypto to its favour or they are just testing the possibilities in order to regulate it. Do remember this is how China became the 2nd larget economy in just 20 years.

This is a way for them to regulate and gain from bitcoin and cryptocurrency as a whole. By centralising it, they indeed will be killing two birds with one stone. That if their strategy works

China is definitely playing double game! Not just on crypto but on many other aspects as well. Allowing Hong Kong to host crypto related business is a part of their ambitious gameplan. They are cashing in while US is showing signs of strengthening it's grips over crypto market. It's clear as broad daylight.

But I really don't understand US. They are allowing crypto companies to operate and allowing listing on stock exchanges. At the same time, giving enforcement agencies a freehand to act against them.

I definitely don't believe crypto will explode in China. Take it from a Tronholder.

BTW. It could be really large even it's microscopic.

Because that is how you get regulation in.
Good or bad, you have to let people do something then you regulate it. If you regulate it 1st, people will do something else. That makes it harder to control so to speak.
If you are doing 'A' and the government comes in and says you have to do 'A' this way, assuming you are a legitimate business, work the way the government wants.
Anyone else will have to follow the same rules.

-Dave

Exactly, That's what they also call it, "One Country, two System (http://www.ilsaedergi.com/en/is-hong-kong-a-city-or-a-country-2/#:~:text=one%20country%2C%20two%20systems)" I have no idea what promise did china made with UK about cryptocurrency (if you could shed some more light on it please) but i can see Hong Kong is the Special Administrative Region (SAR) of china which has some rules, which might give you an idea of two systems and one country statement. Following are some things from which HK is independent:
Source (http://www.ilsaedergi.com/en/is-hong-kong-a-city-or-a-country-2/#:~:text=Hong%20Kong%20and,not%20internal%20law.)
Point number 4 represents the main story behind your query like that's why China had made a separate SAR so that they can test out different possibilities of accepting cryptocurrency. As I don't think the Chinese can use cryptocurrency indirectly by privileging the legalization of crypto in HK, because both systems have different currencies and when you will change your Chinese Yuan to HK dollar then maybe you will be audited for its usage. Strict rules, As china is involved in "BRICS" and is considered as the main pillar among them so I don't think a country that supports innovation will be left behind even in cryptocurrency, in the war against the US dollar. So, It's in there favor to legalize crypto in HK and then encouraging their BRICS currency in crypto instead of US dollar.

It is difficult to know what will happen in the future. China is notoriously greedy and unpredictable, so I wouldn't be surprised if they one day reverse the bitcoin ban to accept bitcoin and encourage people to invest in it. What they're doing is trying to be the number one economy in the world so they'll do whatever works for them.

It could be both. I believe their previous policies of cleaning up the mainland of crypto trading and mining is a step they made to eventually regulate it. I just don't know why it took them long to do that so maybe we could say there's real motive in making HK a crypto hub now. China taking advantage of the recent "unfriendly" moves towards crypto by the SEC and the 30% tax on mining is not that far fetched.

In the end, they licked their own saliva. Banning crypto at first and then banning it completely, but now giving way to crypto in some sectors.

If this is done, of course, Crypto is very useful and needed by China or the US.
Both countries are also focused on how to get huge profits by any means, including by accepting crypto indirectly.

Those who hate and even ban crypto, eventually need crypto as a platform that will provide more benefits.

All governments in the world have their own regulations, but it is possible that regulations are made to make crypto more subservient to the government.

Nope! This is something different. It is not about the US in particular but I believe they want to become a crypto hub of the world. What they have been doing in the past is similar to what they are doing now. This is what makes China so unreliable in simple words.

They are always looking for a global issue. Then, they would sell a solution and in the end they would make everyone dependent to their solution. Might sound crazy but it is actually correct if you check the history.

They are not targeting the USA. They are targeting every country that is against crypto. I am pretty sure they would succeed with thier new ideology.
 

It's needless to say that making HK a crypto hub could attract investors or market players from different countries but don't say they are not targeting those crypto market players from US that are most likely going to be unhappy with the SEC and the IRS. They are most likely eyeing companies like Microstrategy to expand in Hongkong.

Great analysis! Considering your dissection on global politics. I do think China would eventually make HK a hub of cryptocurrency. Go back and recheck what China started with and what it did in 2021-22. They bluffed the US in 2000 and again they are bluffing using HK as an alternative option. They know they cannot lie straight on the face and therefore they have already given a full node with the biggest HK bank. Do look into the timeline you will find the answers.

Why do you think China's CBDC didn't work out as expected? I think that the whole thing is still in a very early stage and that it will take some time for the digital yuan to be integrated into their financial system - but I have no doubt that they will manage to do it the way they want, because no one asks ordinary people for their opinion, nor whether they want something or not.


It seems to me that there is a lot of mention of "crypto" and too little of "Bitcoin", and this only means that the "Chinese" are much more lenient towards what can be controlled. However, how many times in the last 5 years have I read that some city or country wants to become a "crypto hub", so many times I have convinced myself that wishes are one thing, and reality something completely different. I don't know who would even agree to go to HK and start a serious business while the sword of the communist party hangs over his head at all times.


We have already concluded countless times that China did not lose anything significant when it banned the trading and mining of crypto-currencies, the profit from it is almost insignificant if you take into account the size of their GDP.

If you look closely at some of decisions coming from China from trying to trade with Russia and then going back now to reduce their restrictions on crypto currency it actually mean one thing which a political tussle with US. The Chinese have seen how the world is turn towards crypto and the SEC having regulation problems with exchanges this is certainly a big move by the Chinese government. Imagine seeing the yuan trading pair with coins this could increase the spreading of yuan currency to other countries for businesses.

Once said in one of my previous that people should never let the government's political games deceive them.
The reason for the Chinese ban on Bitcoin, trading, and mining is clear. They have the impression that BTC will be a hindrance to the success of their CDBC.
I'm happy they place all the banned on cryptocurrency before the creation of their CBDC so they won't put the blame on crypto just like the US SEC Chair Gary Gensler blames crypto for the Silicon Valley Bank collapse.

That would allow the crypto industry to be concentrated into smaller administrative areas. That way, it's easier to control and enforce. The rise of the illegal mining industry is an example of their failure to allow crypto business to expand to the mainland.
Yeah they basically play 2 cards. The crypto industry is too big to be idle while letting other big countries thrive on it, this really presents a tough choice.

Suit up, people, 'cause China's engaged in an epic duel of cryptographic checkers! First, they put the kibosh on Bitcoin and altcoin trading, then they give miners the boot, and suddenly, Hong Kong is a crypto paradise? Talk about a rollercoaster ride!

But here's a nugget of wisdom for you: I suspect China's just toying with us. They're like that nonchalant classmate who never cracked a book yet snagged top marks by sheer luck. They're keenly aware that crypto is the future, and they're vying for pole position.

So, what's our plan of action? Just recline and let China rule the crypto roost? Not on my watch! Time to mobilize, America! Let's demonstrate to China that we're unshakable, ready to tackle the crypto revolution head-on and catapult it to dizzying heights!

So, fellow crypto crusaders, if you're as exasperated as I am with China's mind-bending antics, then let's band together in this titanic tussle for crypto ascendancy. We might be short on answers, but we're armed with something far more powerful: a burning desire to innovate and an unyielding drive to succeed.

China knows what they are doing, they are one of the early players of Bitcoin so if China banned Bitcoin, it is part of its plan. They don't want the world to know that they are involved in the early stages of it. In the game China is playing the key actors in the world know it and they are just calm to observing the behavior of China in the crypto world. It might be that China is using HK to cover up to key into cryptocurrency ecosystem.

China's GDP rise was because of its manufacturing sector and low cost of labor. Turns out communism works out really well when millions of people are working at slave wages set by the government in order to grow the country's economy. They've dialed back on the poverty a bit and redistributed the wealth they've gained, but their growth won't be sustainable. As for their Bitcoin bans, the U.S. won't be far behind in attempting to introduce their own digitalized currencies while implementing Bitcoin regulations. Europe will be the same way.

The regulators are fighting over who is going to regulate crypto, they can't even say which is security and which is a commodity. And if ever Gensler says ETH is Security then it's the SEC who will regulate it but if it's a commodity, the CFTC regulates it. I can't remember the new commission they have come up though so maybe that new commission will eventually make regulatory clarity before Coinbase moves to Europe.

It's all up to the US government if they continue to push crypto companies away from the US, it will really prove that China is beating the West even in crypto. The advantage of China is that Hongkong is completely a different soil with different government policies while they still can be the boss in the mainland.

One day you allow certain activity, another day you ban it, the next day allow again, in modern world, this won't be tolerated. A lot of people who were into cryptocurrencies in China already moved and settled in different countries since the ban of mining.
Also, to be honest, I don't understand how can this be a problem for the USA or allies. Is crypto adoption hard? Hell no! If the USA and allies want to adopt Bitcoin, they can do it in a few days. It will take some days to Amazon to adopt bitcoin payments, it will take some days to eBay, to twitter, to Walmart.

Yes, that is, I think China is trying to pull the rug out from under the feet of the United States, which is waging a war on crypto. This is a great opportunity for the Chinese government, the great competitor of the American economy.

I think they are trying to take advantage of the anxiety created by the US and attract crypto companies, as this way they will benefit economically and also prevent the US from controlling Crypto alone.

Unfortunately, the United States, with its hostile policy towards crypto, is helping China in its game.

First of all could you explain what I marked in your post? When you are now disappointed that the digital Yuan didn't work out, why are you into Bitcoin? Or are you even?

China isn't stupid. Perhaps they had to learn first before making the right decisions, but I doubt that is the case given that they are by far the world leader in artificial intelligence. It would surprise if they get it right on all kinds of topics from the digital world, but not in the case of cryptocurrencies. I think there is more going on in China than we think. May it be in terms of their Bitcoin holdings or may it be in developing things secretly.

I'm sure their CBDC is carefully planned and its adoption will be fully supported to embark on any of the Digital Yuan visions. They surely have the capabilities to push the usage in order to utilize its functionality.


Hongkong is more lenient compared to Mainland China. A mere recent situation in the US would be too insignificant to turn the table for them. I'm sure that cryptocurrency and bitcoin open up many possibilities, hence anyone in that place or whoever seizes the opportunity could be greatly benefitted from this. In another hand, many possibilities will be explored to see how users and businesses operate, regulation will surely be adjusted because of how the ecosystem develops.

The government is made up of political people who love to use any opportunity they see as being very beneficial to them. I cannot confirm that China is taking advantage of the negative situation of crypto in the US, but definitely they have some major benefits that come after and also for them to bring in crypto-related business gradually while they tend to regulate it.

Also, the government's ability to change a law depends on who is in office and the potential value the person discovers that such technology as Bitcoin can bring to their country. One of the reasons the government is not happy about Bitcoin is that they can't get their hands on its full regulation. So, probably, China has seen reason to start permitting cryptographic activities again.

With China, there’s no doubt in it as the whole thing about China is greediness. They banned crypto so they can launch their own digital money, and now the whole thing is a failure. So we can’t expect from China to do something good for other countries, as everything has something in return. Also, with US, I do think it’s next to China as the greed is high too. One day they will support crypto, the next day they will banned it, so this country is somewhat complicated and hard to understand for regular citizens like us.

How much will China profit if they take over everything that is in the US today and is connected to cryptocurrencies? The entire market cap is just over $1 trillion, not taking into account that this is a poor measure of value considering how easily these numbers can be manipulated. Consider that China's GDP for 2022 was about $18 trillion, and for the next one it is predicted to be about $19+ trillion - so tell me where do you see this as an opportunity for the Chinese government?

It's really strange how some people (and there are a lot of them) have completely wrong impressions about China and want China to go back to "crypto" as if that would be a good thing.

I do believe there is some type of Mr.Robot-isk situation going on with crypto. Where China and the US are fighting for dominance over BTC.

In my opinion China is winning. The US and Western world for the most part still fears crypto while despite the "bans" the CCP embraces it. Plus most if not all high value companies in China basically have to have ties with the CCP if they want to remain successful.

China is all about double games. It's all they do at this point.

if i am see, that China's approach to cryptocurrencies is inconsistent and seems contradictory. The country first banned Bitcoin and altcoin trading, then banned miners, and launched their own digital Yuan. However, this digital yuan has not achieved the success that the Chinese Communist Party (CCP) had hoped for and if pay attention China allows Hong Kong to become the center of the Bitcoin and Altcoin economy, and the largest bank in Hong Kong has expressed its support for cryptocurrencies.

This can be seen as China's way of capitalizing on the current situation in the US, where large corporations and banks are investing in Bitcoin and other cryptocurrencies, and positioning itself as a leader in the crypto industry. I also think, Is it possible that China is just testing the possibility of cryptocurrency regulation, as it has done with other industries in the past by playing a double game with cryptocurrencies?

At the end of the day, China will be the one left to benefit the most with crypto. So it’s a clear manifestation right now that their banning of crypto in the first place is part of the plan so that the rest of the countries will follow too. And now that US and some big countries are already against crypto, it’s now the time for China to adopt crypto and take most advantage on it. That’s how dirty the Chinese government plays the game.

That is also my thoughts because they are very unpredictable which when they opposed their first decision and then they will become successful. What i am worried about is that they will got affected imean if we wont follow what they want we will get affected. We know that china is the number one manufacturer in the world what will happen if they will opposed to everyone like in US what will happen. We know that they have plans on Taiwan

Interesting development for sure. For me, that possible that China is using this situation to their advantage, but it's also possible that they're just testing the waters with crypto regulation. For Hong Kong, I think that it's definitely a sensitive issue. The situation with the UK and China's promises adds another layer of complexity to the whole thing. It remains to be seen how this will all play out, but it's clear that there are a lot of different factors at play here.

In terms of the US and its allies, that they need to be paying close attention to what's happening with crypto in China and Hong Kong. As you mentioned, big companies and banks are already investing in Bitcoin, and if China becomes a major player in the crypto world, it could have significant implications for the global economy.

This is a very welcome development when game been kicking off with good players and the cryptocurrency market will be affected which gives a room for good entry point to buy more Bitcoin and it has been a strategy for Big player to buy at low. Having said that Bitcoin has a future potential.

Hong Kong is not completely under China's control, probably even the very same Chinese government understood that they can't just treat Hong Kong like any other part of country because they're simply too different and they have a mixed mentality, eastern and western, so I don't think they'll ever accept that China could take very important decisions for them.

Regarding China eventually playing a double game, well, would anyone be surprised? At the end we're talking about politics and money, you can't never trust anyone in these circumstances, let alone a country like China, a country where they can simply completely change something overnight without any problem...

I think it's legal in controlling any economy to be sure that superpowers like China will always look for opportunities that can be done to get what they want by looking at rivals who have always been opponents in any field, everything that has been done will be able to change in an instant, if indeed saw an opportunity to dominate.

especially with the hostile situation (USA) is really not doing well with the regulations that are being carried out making many feel uneasy and many are relocating and not even operating anymore.

although maybe right now he is using Hong Kong territory for a while by looking at the prospects that will happen, if it is indeed possible and profitable then he will easily move from there.

What country around the world does not play a double game? China is well aware of the capabilities of bitcoin and they do not like it one bit, however they are trying to seize an opportunity, they are trying to use every single tool they have at their disposal to try to weaken the US, will this work? I have my doubts but the Chinese government will try it anyway, as they have nothing to lose if it does not work and everything to win if this new posture allows them to get even the smallest advantage over the US.

If you are a big nation, you have big power to play double standard.

I agree that it occurs with all big nations, USA, UK., China, Russia and more. However the importance is what end result for small nations which are engaged with games set up by big nations. I believe that the world is better because of capitalism and nations follow that philosophy with which their citizens have freedom of speech, politics, and more basic human rights.

With communism and communist countries, they are governed by dictators and dictatorship which eliminate basic human rights. With such centralized power, you can not expect to see their double standards can bring anything good to other nations.

We can stop talking about politics and returning to Bitcoin and its mining. Bitcoin and its mining can not be stopped by a single nation and all nations are aware of this fact as well as decentralized power of Bitcoin. They have to adapt to change from trying to stop, kill Bitcoin to accept it and build more regulations about it.

i believe that it depends on whoever exerts a lot of influence in terms of political power in that specific country and it will also be the one to dominate in decision making. this just shows how much of a political country China is, and not only China but every other country that exerts influence will be the ones to dictate the game.

In 1997, Hong Kong ceased to be a British colony and became part of China as an autonomy. It is subject to Chinese law, but only in certain areas (defense and foreign policy), and it has its own constitution, as well as a parliament and executive branch. Therefore, in principle, China's cryptocurrency policy should not extend to the territory of Hong Kong. In addition, in China itself, the ban on cryptocurrency, as far as I know, comes only from the Central Bank - the People's Bank of China. No regulations have been adopted by legislators or the government of China. Therefore, it is not surprising that Hong Kong banks are showing independence in relation to cryptocurrency.

China itself is a game! You can never understand their next move at all because they are not willing to share any critical details and never want themselves to be involved in a situation like this. There was no reason for the chinese government to ban the mining operations and as far as I know china was top of the list when it came to mining operations. They had amazing infra and huge taxes were collected on the same.

However, soon they realised the chips that are required has more value in the international market as compared to what they could get within the country.

They are always looking for bulk selling out of their country and want more money being cheap manufacturer of everything.

Now, when it’s coming down to bitcoin then want to profit from that technology as well. This was the main reason behind formation of Digital Yuan. Since China is not completely democratic, they have forced economical structure and they thought they would be successful if they say so to their people.

Definitely this is double game on crypto and their own people as well. They never learn though.

China saw Bitcoin futures bullish early on and they sought to accumulate them. Bitcoin is both a currency and the best asset to store. China's economy is growing fast, they are the world's factory. Chinese goods compete directly with anything made around the world. The special thing is that they have counterfeiting technology, abundant and skilled workers.
China is allying with Russia, India, Middle Eastern countries to separate itself from the dollar. This dramatically affects the existence of the US dollar.
I believe that China will emerge as a direct threat to the US economy and this is becoming more certain as we observe their recent moves.

We should not underestimate the capacity of the Chinese government to push for the adoption of their centralized CBDC, their objective is to further implement those services and wallets to watch over or spy their people.

The Hong Kong situation may be a testing balloon allowed to be launched by the Chinese government so they can test the market and the capabilities of crypto currency as vehicle of value. They know Crypto currency has a lot of future and it would be foolish of them to ignore it, even more if there are Chinese citizens who go again the ban on these assets and still hold and transfer Bitcoin from the shadows.

They do not want crypto to go popular worldwide, but as the highly competitive country they want to continue to be, they cannot afford to stay behind in case this becomes the standard in the future.

I believe that China works based on this sort of careful compartmentalization (which is officially known that "one country, two systems" (https://en.wikipedia.org/wiki/One_country,_two_systems) principle, as Faisal2202 pointed out as well), which means that what happens in HK doesn't affect the rest of the country. There's the majority of the population and territories, and they live under strict authoritarian policies. And then there are special areas that have something happening differently. Hong Kong is special because of transitioning after 99 years of the UK rule. But then there's also Macau, that also used to be a Western colony (but Portuguese, not British) and is kind of a Chinese Las Vegas. So IMO it's all consistent, China just treats these regions as economically different, while trying to make them as close to the rest of China politically. Cryptos are more about economics than politics, so perhaps HK can have better crypto policies, as long that they don't protest against Chinese authorities.

You didn't point out their biggest play right now which is strengthening BRICS and having the countries of that organization be convinced that they should abandon the USD as a reserve currency, their current play isn't in crypto right now, and to be honest, I think that they're close to winning in that part.

No bruh, it's a losing battle.
Not China against currency but us trying to teach newbies how ridiculously small  the whole crypto ecosystem is right now and how little there is to gain from it when with talk about a country with a GDP in the trillions.
Everyone says that countries need to attract crypto businesses so
- low or zero taxes for those companies
- zero taxes on profits
So, what are those countries going to benefit from when they will not tax anything, they will end with millions of untaxed citizens' money, huge capital outflow, and all this for what? 10-20 low-paid customer support jobs and a 100 sqm office?

Newbies would really understand to analyze the different implications between personal gain and country-level gains when it comes to crypto, the fact that one person is earning $ doesn't automatically mean for the said country there is also a net gain.

Back to the HK thing, it's just China showing a bit of carrot, wait for the stick, as soon s too much money pours into this and they start losing control they will shut it down in a split second.

China plays the game of allow and watch.
They have done so in joint ventures, with Bitcoin trading and mining.

And now they allow Cryptotraders to act from HK's soil. In 10 years or less they'll have enough data to decide what to do.

No doubt. I mean, there’s nothing new about China, everything they did was part of their hidden agenda. Now, US and other countries have been showing inequality to crypto too, same what China has did in the first place. But I believe when all these countries will hate crypto and lost all the advantages, China will enter again and grab the chances and advantages that crypto can offer. So it will be a loss for those countries who have doubted crypto, and China will be the last country standing ready to own crypto finally.

AFAIK, HK is still on the phase of making their economy great again and that's why it's either them or Singapore should be the hub in Asia right now for crypto people and companies.

They are removing that restriction and being soft and smooth for these policies because they want to enjoy how it looks like being soft with such policies that will help their economy to keep up.

While they're in that region, they can keep and change policies but in mainland, they're always tough and yes, they're playing the game of what's with the world economy now. Thus, being open with crypto is a good policy that they're trying to test the waters.

China had been playing double game not only in cryptocurrency but in occupying other territories as well.  They do not honor the United Nations Convention on the Law of the Sea (https://en.wikipedia.org/wiki/United_Nations_Convention_on_the_Law_of_the_Sea) if they are too occupy other territory but apply it against Japan when Japan occupy theirs.  So it is normal to think that China is playing a double game.  They will use any means that will gain them an advantage and disregard it if will put them at a disadvantage.

About the cryptocurrency status in HongKong, as far as I know HongKong has its own government, so I do not think that the Chinese government has something to do with the friendly attitude of Hongkong government to cryptocurrency.

China has tried out several projects inorder to stay ahead of the U.S economy. It is hardly unbelievable that they do not have a game plan. It is quite clear. Bitcoin and cryptocurrencies in total has opened the eyes of many and its possibilities is numerous.
They might have tried crypto in order to understand the Blockchain system better, and also to find loopholes with which it could control, monitor and dominate the crypto space, before America does so and thereby control the world economy once again.
Also, It could be to monitor monetary transactions that could be payment to terrorist or hackers/scammers, mostly now when the world is on a brink of war.

Honestly, it can be difficult to understand the mindset of the Chinese people. I'm curious why China seems to be lagging behind the US in terms of allowing its citizens to use Bitcoin. It seems that they have realized that they shouldn't fall behind the US because Bitcoin is the most up-to-date and secure technology in the world of cryptocurrency. By banning Bitcoin, they are distancing themselves from those who accept it. Nonetheless, China is likely more aware of their own motives and reasoning for their actions.

China is giving itself an option to use Bitcoin if it will need to. I think its biggest concern was that Bitcoin will be used for capital flight, which led to ban, but if they only allow Bitcoin in Hong Kong, it's not a problem for them, because Hong Kong is a special economic zone.

And I doubt that China banned Bitcoin because it didn't want it to compete with its digital currency. Digital yuan is there to consolidate government control over fiat payment systems.

Very true the crypto world is way smaller as painted. Too easy to open a wallet.
Than forget about it and make a new one.

Greed has always been the center of China ever since. So I should never doubt if this is just part of their game plan. Maybe they’re up to something new why they let Hong Kong become crypto friendly when all they want to promote is their own digital currency Yuan. If I’m not mistaken, they plan to get back with crypto again since Yuan never get the success they want. So by deceiving other countries like USA, who is anti crypto yet they allow crypto operations, they will come to believe them that crypto has no place in their country and should be banned permanently.

They banning the bitcoin so their CBDC can roll out and they dont want to take the risk when the crypto become mainstream till payment there although you was right they push Hongkong which is special region and small country to adopt crypto I think this for experiment if in the Hongkong Succedd they migh lift the ban on the mainland china

No doubt china is the 2nd largest world economy but the attitude of China towards cryptocurrencies, such as Bitcoin and other altcoins has changed over time. They initially outlawed cryptocurrency mining and trading, but they've since expressed an interest in regulating the industry and using cryptocurrencies to advance their own financial objectives. China may have changed its mind after the scenario in Hong Kong where big institution bank have publicly stated their support for cryptocurrencies. The exact scope of China shifting stance on cryptocurrencies ramifications for the US and its allies though is uncertain and vulnerable to change.

whether China is deliberately taking advantage of the negative crypto situation in the US or just experimenting to find an optimal regulatory strategy I think is still in the dark. what is certain is that China's economic growth is increasing and there are various factors that contribute to its rapid growth, including policies that encourage investment and trade, a focus on education and innovation, as well as a large workforce. If i see China has taken steps to limit the use of cryptocurrencies within its borders and is actively working towards developing its own digital currency.

China always plays double standards both in the political and economic ecosystem. They have not openly criticized Putin for invading Ukraine and they are not also supporting Ukraine. They don't want to lose the benefits of their trading with the West so they support Russia secretly, while they are also pretending to promote peace. Hong Kong is its economic lab where China experiments with Western economic and political policies (capitalism). While mainland China is used for the implementation of socialist and authoritarian policies. China doesn't want to lose the benefits many nations are deriving from cryptocurrencies so Hong Kong serves as the avenue to get those benefits.

The recent developments in China regarding cryptocurrency regulations have been somewhat contradictory and puzzling. While China has cracked down on cryptocurrency trading and mining in the past, it has also been exploring the potential of blockchain technology and its own digital currency, the digital yuan.

The recent announcement that Hong Kong will be allowed to become a hub for cryptocurrency is indeed interesting, and could potentially be an attempt by China to capitalize on the growing interest in cryptocurrencies and blockchain technology while maintaining some control over the market. It's worth noting that Hong Kong has long been an important financial hub, and it's possible that China sees an opportunity to leverage that position in the growing cryptocurrency market.

At the same time, it's important to remember that China is known for tightly controlling its economy and financial markets, and it's unlikely that it would allow a completely unregulated cryptocurrency market to thrive within its borders. It's possible that China is simply testing the waters and exploring the potential for regulating cryptocurrency within its own borders.

Ultimately, it's hard to say exactly what China's intentions are with regards to cryptocurrency. However, it's clear that cryptocurrencies are becoming increasingly important and influential in the global economy, and China will need to find a way to navigate this emerging market while maintaining its control over its own financial system

The cryptocurrency market can not be stopped by a particular country, but rather a smart game of playing panic for market to dump, because Bitcoin don't like negativity talk, mostly the countries that has a strong economy in world, by using the power to play a game, while Market get dip and taken the advantage of buying entry point for future holding.

I feel like they are just staying in the middle and that is a smart move that many should have taken. I mean I understand that Ukraine wouldn't have been able to fend off Russia without help of anyone else, but lets assume that Europe defends Ukraine, then USA shouldn't, or if USA does then EU shouldn't, or if one nation does the other shouldn't. There is no nation openly working with Russia right now, but there are so many with Ukraine.

Even though I believe Ukraine is 100% right to join EU if they want to, and Nato is something that can be accepting them or not based on merit, and not what Russia says. But also as someone who lives in a nation that has nothing to do with this, absolutely far away and we didn't say a single word about it, I just worry about the costs that will result, not just financially but what if nukes starts? That scares me a lot.

China never liked things getting out of their control, they need to be in power, and thats why they ban crypto mining first, if truly they plan to support crypto from now on they might come up with a fair rules for crypto miners in China, I think if China can be more opened to a centralized way of embracing crypto and also CBDC side by side it will be cool and other countries will learn from this.

I'm not exactly sure what China is doing as they want to fight with this situation, they're just making a good example of them that will really be a big help for bitcoin and cryptos because they don't want to let this situation happen to their countries.

It's difficult to say for sure what China's intentions are with regards to cryptocurrency, but it's possible that they are testing the waters in order to regulate it or take advantage of the current situation in the US. However, it's important to note that China has a history of cracking down on cryptocurrency and has previously banned both trading and mining, so their recent actions could also be seen as contradictory. As for the situation in Hong Kong, it's true that the region has become increasingly under China's control, but it's unclear how much influence they will have over its cryptocurrency industry. Ultimately, only time will tell what China's long-term strategy is with regards to cryptocurrency.

They might be, however, China's President Xi has already mentioned some years ago that he wants China to become a leader on different internet technologies including blockchain. Hong Kong might only be the beginning and to test different regulations and observe what they can use in IT economic zones of Shanghai.

This news was published on 2019.



Xi Jinping, President of the People’s Republic of China and General Secretary of the Communist Party of China, said the country needs to “seize the opportunity” afforded by blockchain technology.
Speaking as part of the 18th collective study of the Political Bureau of the Central Committee on Thursday in Beijing, Xi said blockchain technology has a wide array of applications within China, listing topics ranging from financing businesses to mass transit and poverty alleviation.

Source https://www.coindesk.com/markets/2019/10/25/president-xi-says-china-should-seize-opportunity-to-adopt-blockchain/

We do not know what the officials in China are planning or thinking. Just from what I see I don't believe that China doesn't like Bitcoin or cryptocurrency.

          They're just putting it out there like they don't want it but I think China is also hoarding potential altcoins that could bring them good profits in the future. Also, I think they are just doing bad things to altcoins so that when the value falls, they will suddenly buy a bulk of it and then hold it until the bull run happens again. In short, this is a Chinese marketing strategy as far as I can see.

@bettercrypto. However, we already know what China is planning. They want to be the leader in information technology and blockchain.

I speculate that China will be again become the biggest mover in the cryptospace market when they open their country again. This will begin in Shanghai, I reckon.

I am not quite certain if this is real, however, this is a commemorative NFT rumored to be created by the Shanghai Data Exchange under the direction of the Chinese government. This is issued in Ethereum.

https://launchtower.cryptonatty.io/

It is interesting to consider the potential impact of China's re-entry into the cryptocurrency market, especially given their history with the industry. What do you think will be the main factors driving their returns and how is China's strategy to enter the crypto market and how do you see this affecting the global crypto landscape?

Not only China and all other governments have that mindset. They will never let anything get out of hand and threaten their power. Like the US government, they are not as radical as China, but they also want to suppress us and control us more. I believe governments are aware of the potential of cryptocurrency, they are just looking to control it rather than destroy it. It's just that their approach is quite extreme and affects us.
I don't believe China will ban crypto forever, there will come a time when they claim to use it, but we will follow their rules, not freedom our way.

China wants to stay ahead in the game, so it has no choice but to adopt crypto/Blockchain tech for its own benefit. And what better way to do it indirectly through a territory it controls? The US better make crypto regulations more flexible or it could be left behind in the dust by its rivals.

One thing for sure is that Hong Kong is one of the world's largest economic hubs. Therefore, adopting crypto/Blockchain tech should help China attract investors and companies that will ultimately benefit its economy. Maybe Russia will "mimic" China by adopting crypto/Blockchain tech through a territory it controls? These are uncertain times we're living into, so expect the unexpected. Just my thoughts ;D

There is a saying that China has no friends, China has interests.
It means that the Chinese government always acts on the basis of benefits. In the case of bitcoins, at first they were afraid that this process is uncontrollable and potentially threatens to collapse all financial institutions of the world, the current economic situation. But later they realized that they wanted to manage such a process, created a digital yuan. I think everything will come down to the fact that he will not be close in ideas to bitcoin anyway. Bitcoin is freedom and transparency. And the government (especially China) will not allow this.
Remember how they controlled the lockdowns.

News update.

This is very good news coming from Hong Kong! This is not only a speculation anymore! This will certainly pump bitcoin and altcoins before this year will end. There might also be projects that will be speculated as the Chinese Ethereum. It was argued that it is Neo but I disagree. The real Chinese Ethereum will be whitelisted by the government of China. Wait for this.

https://i.ibb.co/RyRtQ48/807-DE7-DD-0949-4605-8-BB4-D91-D3-D8-CFEF4.jpg

Hong Kong will allow retail trading of cryptocurrencies as early as the latter half of this year, the Securities and Futures Commission announced on Tuesday, adding that it will accept applications from exchanges to offer such services from June 1.

The move comes as Hong Kong pushes to become a hub of the crypto industry even as other jurisdictions remain cautious following the collapse of cryptocurrency exchange FTX late last year.

Source https://asia.nikkei.com/Spotlight/Cryptocurrencies/Hong-Kong-greenlights-retail-trading-of-cryptocurrency

Hands down, China is smart, they did all these to be in control and it's working thus far, it shows that they have somehow find a way to start benefitting from crypto, and also projects that have to run from China must go through the right process or risk getting nailed by the government, to me this is what the US is looking forward to, they just don't know how to do it yet.

About Bitcoin mining, it's still functioning in China, the reason they destroyed so many miners years back is because many citizens are into illegal Bitcoin mining, they are stealing the country's grid power to mine Bitcoin, any country will do the exact same thing that China did.

Chinese are still mining Bitcoin, but it's now limited compare to years ago, now some are using solar panel if they can afford it and I heard that those who are ready to pay for their grid power consumption are allowed to keep mining Bitcoin.

China doesn't like when things get out of control. Now, by their actions, they just want to regain control.
They want to centralize Bitcoin lol

Maybe they see the US being hostile somewhat to bitcoin without any regulatory clarity and think if they step in & offer regulation to big companies they will move there & China can make a lot of money out of it. China see an opportunity to gain ground on the US in the fight to be the number 1 for digital currencies. Let’s see how it plays out.

It is possible that China sees an opportunity to gain an edge in the global competition for digital currency dominance by providing clear regulations and attracting large companies. As such, China is likely to strengthen its influence and competitiveness in the digital currency space. In addition, they are also trying to develop a digital yuan - CBDC helps the government increase transparency and control over their financial system, as they can track transactions and have the ability to enforce regulations more effectively. So what impact they will have on the cryptocurrency market, only time will tell.

What do we expect from China than to play dirty games with those countries that are against it. And with this scenario, they make sure that everything should still fall on their control. For US, they legalize bitcoin but they also give sanctions and create laws that will put bitcoin into restrictions. I guess they just want to secretly follow the idea of China, but act as if China is their best enemy.

I'm not sure if they'll use HK as testing grounds for Bitcoin adoption or not but I'm sure China will embrace Bitcoin sooner or later. And it's going to be BIG! Remember the effect "China bans Bitcoin" FUD was causing? Imagine the same effect but in the other direction!  ;D

Of course they do. They're not that stupid. Even their alleged alliance with Russia is fake. China may be doing this for its own benefit. The same thing can be said about its apparent adoption of crypto/Blockchain tech through Hong Kong. They will allow investors to pour money into Blockchain startups and companies in HK, but they won't allow people to use crypto for their own benefit. Otherwise, that would mean China is letting people enjoy true financial freedom.

I think the UAE (especially Dubai) will become the next epicenter of the crypto/Blockchain industry soon. Many companies already announced their intentions to move there. Money talks, so time will tell us which country will benefit the most out of this craze. Who knows where the crypto industry will be heading in the long run? Just my opinion :)

For anyone who thinks that China banned the cryptocurrencies only last year had to know that this is not the first instance they banned and to my best of knowledge they banned bitcoin in 2013 and followed by many times but they do know its impossible to stop the Bitcoin completely for being utilised so banned mining operations which also backfired to them cause the miners simply moved to other country so there isn't any effect on hashrate.

HK bank is operating in multiple countries so its not possible to operate for them in China unless they revoke the restrictions but they are free to operate in other locations.

No matter the status of bitcoin legality in China, there are people from China who is holding huge chunk of Bitcoin and always been a part of BTC whale group.

China's roadmap for their blockchain ambitions is not based on what America has been doing in their blockchain ambition, if they have one hehehe. Similar to what I have been saying before, China wants to be the leader in information technology including blockchain. They would certainly need to open up their country for the cryptospace to make it a reality.

I speculate that they might start it with whitelisting some centralized exchanges and maybe also some DeFi projects. It might have full oversight, however. It will not be the same as the open cryptospace that we are familiar with.

China might look like playing double game, but they're clear with their plans. It was China who helped with the circulation of bitcoin in the earlier days. During those days, even the grown economies and the technology wise developed nations too didn't considered it. At some point fake volume issue were identified during inspection by People's Bank of China. From then onwards it started strict regulation and terminated the operation of few exchanges. Later the ban on cryptocurrency mining, altcoins and bitcoin happened. Every country wants them to be dominant in the technology, and the increasing demand made China stay away from the race.

As OP said China hadn't grown out of making some cheap politics between the powers, it have got the strong manufacturing setup which is the reason it have emerged as one among the strong economy in the last 20 years. USA also a reason, to suppress the supreme power of Russia media started to compare between China and USA which too helped them in the growth.

China's crypto dance is like a never-ending tango - one step forward, two steps back, and then a sudden twirl. Are they really regulating or just enjoying the dance? Either way, it keeps us all wondering what's next.

It's easy to understand to be honest, I like the analogy. CCP wants what's best for the party, and if the favor and benefits that bitcoin offers is swaying, then the party is going to swaying wherever they get the most benefit. Doesn't China always do this with other stuff too, I just can't think of one thing that is similar to this but I am sure of it.

China has always looked for its own benefit. Its tactics has led it to where it is right now. Currently, China is the world's second-largest economy. And it could become the largest economy in the world if it continues to do what it's doing. By adopting crypto/Blockchain tech, China could get the tools/knowledge it needs to help strengthen its CBDC (digital Yuan). It can also collect huge taxes along the way. China is not stupid, unlike the US that recently went aggressive against the industry.

If America continues to reject crypto, then it will be left behind in the dust, paving the way for China to take over the world. Crypto is the future whenever governments like it or not. Let's see how everything will play out in the long run. As long as crypto stays decentralized, nothing else matters. Just my thoughts ;D