YEREVAN (CoinChapter.com) — On August 18, 2024, Tron founder Justin Sun tweeted,
“China unbans crypto. What’s the best meme for this?”
This tweet quickly sparked rumors that China might be reconsidering its stance on cryptocurrency. However, there has been no official confirmation or solid evidence to support these rumors.
This is not the first time similar rumors have surfaced. On July 14, 2024, Galaxy Digital CEO Mike Novogratz tweeted that he had heard reports suggesting China might unban Bitcoin by late 2024. Novogratz said,
“If this is true, and it’s the second time I’ve heard in weeks, it’s a huge deal.”
His tweet has since been deleted, and he admitted that more information was needed.
These tweets has generated significant attention, but the lack of official statements from Chinese authorities keeps the situation unclear. The crypto community remains cautious, given China’s history with cryptocurrency policies.
Debate Over China’s Crypto Ban Resurfaces Amid Mining Concerns
Novogratz’s post sparked a debate online, where one Twitter user highlighted China’s repeated attempts to restrict Bitcoin and other cryptocurrencies. The user referenced the 2017 ban on cryptocurrency exchanges and the 2021 interdepartmental crackdown, stating,
“They have banned it like six times, and nothing has happened. The same thing will happen when they ‘un-ban’ it multiple times.”
Despite strict regulations, China remains a global leader in Bitcoin mining and other crypto activities.
In late June, Wang Yang, a professor at Hong Kong University of Science and Technology, questioned the logic behind China’s cryptocurrency mining ban. He urged the government to reconsider its stance, especially given the geopolitical risks. Yang argued that banning crypto mining was “very unwise” as it pushed related businesses to relocate to the U.S., boosting U.S. tax revenue.
Experts Doubt China’s Crypto Unbanning Despite Hong Kong ETF Speculation
However, industry experts remain skeptical about China unbanning Bitcoin. Yifan, CEO of Red Date Technology, dismissed the idea, noting that allowing such transactions contradicts the rationale behind the original ban. He pointed out that Hong Kong-based exchanges like HashKey don’t accept mainland Chinese users due to strict legal restrictions. Similarly, Trading Strategy co-founder Mikko Ohtamaa argued that lifting the ban would undermine China’s political objectives, as cryptocurrencies enable capital flight, threatening financial stability.
These concerns arose amid speculation following the launch of spot Bitcoin and Ether ETFs in Hong Kong in April 2024. Some believed this could signal a shift in China’s approach, possibly opening the door for mainland investment. However, local experts emphasized that stringent regulations prevent ETF issuers from offering such exposure. Analysts agree that China’s strict laws and political priorities will likely continue to block any significant deregulation of its Bitcoin market, regardless of developments in Hong Kong.
China’s Shifting Stance on Cryptocurrency
China’s relationship with cryptocurrency has been marked by bans and restrictions. In 2017, the Chinese government banned cryptocurrency exchanges. In 2021, it extended the ban to cover crypto trading and mining activities. Despite these restrictions, China continues to play a significant role in the global crypto market, particularly in Bitcoin mining.
China has repeatedly imposed and lifted restrictions on crypto-related activities. These shifts have created uncertainty in the market, leading to skepticism about any new rumors.
Although tweets has sparked interest, it aligns with China’s past behavior of fluctuating between accepting and rejecting digital currencies. These changes have often occurred without clear explanations.
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