Tether co-founder is confident in the lifting of the ban on cryptocurrencies in China
Date: 2024-06-05 Author: Oliver Abernathy Categories: IN WORLD
Co-founder of Tether, which released the popular stablecoin Tether (USDT), Brock Pierce expressed confidence that China will lift the ban on cryptocurrencies in the future. In his speech, Pierce noted that the current situation with restrictions on trading and mining of digital assets in China will not last forever and that the country will sooner or later take more liberal measures.
History of the ban
In 2021, the Chinese government listed cryptocurrency trading and mining as illegal activities. The move was part of broader efforts to control the financial system and prevent risks associated with decentralized digital assets. Despite the ban, a gray cryptocurrency market has begun to develop in the country, in which shady dealers sell coins and tokens for fiat currency, limiting the payment amount to 50,000 yuan (about 629,000 rubles) so as not to attract the attention of regulators.
Brock Pierce believes that the current restrictions on cryptocurrencies in China are temporary and that legal crypto exchanges will replace shady dealers in the future. He claims that:
"China will become open to cryptocurrencies. The main question is not whether it will happen or not, but when it will happen."
Prospects for Hong Kong
According to Pearce, Hong Kong has the potential to become the main hub for cryptocurrency trading in China. However, at the moment, the Securities and Futures Commission (SFC) of Hong Kong prohibits local companies from providing services related to the purchase and sale of digital assets to residents of mainland China. This has led to many firms withdrawing their applications for virtual currency trading licenses to the SFC.
Impact on the cryptocurrency market
The Chinese government's ban on cryptocurrencies had a significant impact on the digital asset market, causing a bearish trend. The prices of major cryptocurrencies such as Bitcoin, Ethereum (ETH) and Dogecoin (DOGE) have dropped significantly. Bitcoin fell by 10%, Ethereum by 22%, and Dogecoin by 24%. Pierce believes that lifting the ban on buying and selling cryptocurrencies in China could reverse the trend and lead to a bullish rally in the digital asset market.
Brock Pierce is confident that the lifting of the ban on cryptocurrencies in China is inevitable and that this step could radically change the situation in the global digital asset market. The legalization of cryptocurrencies is expected to increase their value and popularity, and Hong Kong could become a key player in this new economic reality.
