China’s crackdown alerts an oncoming crypto ban, Bobby Lee says
Bitcoin (BTC) maximalist and Ballet CEO Bobby Lee not too long ago discussed the implications of China’s ongoing crackdown on cryptocurrency. Despite the federal government’s help for a digital renminbi, Lee prompt that Beijing has no real interest in nurturing the cryptocurrency business.
Considering his collisions with the Chinese authorities throughout his stint in operating China’s first crypto exchange BTCChina, Lee stated:
“It (China) wants to regulate (cryptocurrencies) to achieve its overarching goal of globalization of digital RMB.”
He additional acknowledged that the Chinese authorities is just not 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 fear that in 4-5 years, the country might outright ban it (cryptocurrency).”
The authorities’s current ban on crypto mining and associated buying and selling appears to be aimed toward deterring residents from getting closely concerned in high-risk investments given the growth in buying and selling volumes. Adding to this thought, Lee stated:
“Bitcoin is not a direct competition to the digital yuan. I don’t think that the cryptocurrency industry will suffer from China’s pullback.”
Bitcoin’s decentralized international community has led Lee to imagine that China’s stance in accepting or banning cryptocurrency won’t 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. But 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.
Related: FTX reduces max leverage from 101x to 20x to encourage ‘responsible trading’
Owing to China’s current crypto rules towards dangerous buying and selling, crypto companies have began taking proactive steps to remain related within the ecosystem. As per CT’s current report associated to this growth, FTX introduced to restrict its buying and selling leverage to 20x, which was beforehand standing at 101x.