The Role of Crypto Regulation in China during the Next Bull Run
The issue of crypto regulation in China could have a significant impact on the next bull run. Since the last major bull run in 2021, China has taken a strict stance against Bitcoin and cryptocurrencies, banning its citizens from buying and selling them.
Current Crypto Regulation in China
As of now, the ban on buying and selling Bitcoin remains in effect in China, except for Hong Kong. Hong Kong is an autonomous territory with its own laws that differ from those of mainland China. While crypto trading has been allowed in Hong Kong, it hasn’t yielded positive results yet.
Bitcoin’s Legal Value and Crypto Regulation in China
Despite the ban, Chinese law recognizes Bitcoin as a valuable asset. A senior judge recently published a post stating that Chinese law acknowledges Bitcoin’s value, particularly in cases of theft or property-related crimes. The challenge lies in determining the market value of digital assets without local exchanges.
To establish a valuation mechanism for digital currencies, third-party institutions should conduct surveys and estimates. However, there is a misunderstanding arising from Marxist theory, which does not account for how prices are determined in financial markets.
Overcoming Communist Politics
China has been open to the free market for over 30 years, gradually moving away from communist ideology. Chinese companies behave similarly to Western companies when determining market prices for their exports, disregarding Marxist theory.
The attempt to defend communist propaganda against the power of the free market is likely to fail. Eventually, Chinese policy will need to assign a market value to Bitcoin, similar to what the judiciary has done. This signifies a departure from Marxist theory once and for all.
Hot Take: The Future of Crypto Regulation in China
As China continues to evolve economically and politically, it is only a matter of time before the country fully embraces the free market in the financial sector. This shift will likely benefit Bitcoin, leading to its recognition and assignment of market value by Chinese policy. The outdated Marxist theory of value will be set aside, making way for a more accurate understanding of cryptocurrencies. The future holds promise for the growth and acceptance of Bitcoin in China.
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