To me China always trys to make themselves the center of the world. However with bitcoin they got showed up big time and are now reconsidering what they have done.
After banning ICOs (which I agree was a smart move and all governments should do it) they went a bit to far by banning bitcoin and have paid a heavy price for it.
China use to hold a large stake of bitcoin however just before they issued the ban only about 19% of bitcoin was held and used in China along with a major amount of mining. Since the ban however bitcoins price has remained strong which goes to prove how badly people want it and believe in it.
Because of this China is now eyeing up the markets again and looking for an entry point back into bitcoin but in a way they can "control" what might be surprising to them though is its built to be decentralized thus you can only control it to a point.
The big things that most likely will happen as China reopens its markets are the following.
Licensing Program
Like Japan currently runs a licensing will happen with any new China based exchanges that will allow China to better control and see what is going on with BTC and other alt coins.
KYC and AML
KYC = Know Your Customer and AML = Anti-Money Laundering
are two big new systems China will be introducing, I feel like China will be the test bed for this before other countries look to adopt it. This seems to still be a few months away however it clearly now paints a picture of Chinas re-entry into the markets thus making BTC prices at the moment look like some really good buys for the long run 1-2 years from now.
Hey bitcoinflood,
Nice work sir
China can't afford to be out of cryptocoins, it's a trillion market. They will be back stronger than ever.
Have you seen that regulating crypto currency seems to be trending in Asia, now I hear Malaysia is also planning to do it.
I have been seeing it pop up more. Big question is now what is it going to be like and how soon will it reopen markets could be a few days, months? But when it does I see nothing more then the price going up and up from where we are today.
Obviously, infact I see the fluctuating price as a little barrier they would need to surmount whenever they reopen, ugly market conditions would always play before it becomes balanced.
Maybe they purposely banned it so they could buy a whole heap of Bitcoin, wait for it to go back up and re-enter knowing it could put the price right up and even higher again. Common trading scheming.
China has no choice but to get back into the cryptospace or get left behind.
This will set a good example to other countries who may try to ban blockchain technologies.
One thought: China is known for manipulating the price of gold so what if these two timed announcements, first about banning all ICOs, then about banning bitcoin exchanges were intentional? Perhaps China was the biggest buyer of bitcoin when its price dropped briefly below $3000 in the days after the announcements.
China will come back in sooner or later!
History tends to repeat itself. The people who were here at the end of 2013 knows it. Sometimes, a bubble burst can be healthy in the long run.
Agreed
I am sure they might have thought over and over again also lookong at the current prize of btc and how it will be in the nearest future,and they now want to partner with blockchain.
Their re entry into the market could skyrocket prices
If these move will continue soon BTC and alts will gain a good price.
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Maybe we'll get some announcements after the 19th Party Congress.
Any ideas on who the winners will be?
This is the best and all it can do it can help the world wide that can help as make extra money for a living.
Crypto and KYC/AML are mutually exclusive? Roll on PIVX!
Governments and Banks worldwide will look at ways in which they are able to control. Some ideas are good as you highlighted, ICO days of being created are fast coming under scrutiny which may be a good thing.
Total ban was not a good idea, but then how many in China quietly held onto their share to ride the storm out and not creating the havoc that everyone expected?
We figured this would happen, the market will return to normal once they come back into the fold, it will be very interesting to see the price down the line.