China did not ban Bitcoin-related activities. In fact, Bitcoin regulated as commodity in China. A local non-profit arbitration organization announced that China did not ban Bitcoin trading. In this post we are going to take a look at China position against Bitcoin.
Bitcoin is not equal to money
The Beijing Arbitration Commission (BAC) reported that China does not recognize Bitcoin as real money. However, any Bitcoin related activity is not ban in China. In fact, the Bitcoin recognized as virtual commodity in China.
The BAC believes that regulations are not enough clear to recognize Bitcoin as a virtual property.
The BAC reported that China does not ban Bitcoin related activities as virtual commodity, but the laws are different for the activities, which are engaged in as legal tender.
Furthermore, BAC said, Bitcoin does not associate with an illegal transaction. The reason is that Bitcoin in China doesn’t use as a replacement for fiat currency. Additionally, Bitcoin is not used as an alternative to the legal tender.
The BAC clarified that the prohibited transactions consist those when Bitcoin used as a currency. In fact, as long as Bitcoin doesn’t use in the form of currency, there is no prohibition.
China Position Against Bitcoin; Bitcoin will remain legal
Since 2017, China is one of the strictest countries in related to cryptocurrencies. Actually, it had strict regulations about local crypto exchanges. Although Binance, the world’s largest cryptocurrency exchange, established in China, it forced to leave the country due to laws and regulations.
China was strict about cryptocurrency so far. But, it never totally bans crypto-related activities. For example, mining Bitcoin is legal in China. As Wallebi reported previously, most of the biggest Bitcoin mining farms are located in China.
Chinese authorities reported few times so far that Bitcoin mining will not be an illegal industry in China.
In Addition, Xi Jinping, the China president, called the country in 2019 to prioritize blockchain development. Meanwhile, China Central Bank is also working on its own CBDC and could get a notable amount of success in the project so far.