china - China’s State-Run Newspaper Globaltimes Calls for Crypto Regulations

China’s State-Run Newspaper Globaltimes Calls for Crypto Regulations

Regulations around cryptocurrencies are growing everywhere around the world. They can be more crypto-friendly or totally ban virtual currencies – as it happened in China. But it is not possible to discuss that there is not a clear trend towards regulations.

This time, the Chinese government may be looking into a new way to control cryptocurrencies. On May the 30th, an editorial on Globaltimes.cn, which is owned by People’s Daily, the official communist party newspaper, shows that Chinese authorities could be re-thinking the government’s stance towards cryptos.

China’s Crypto Regulations

Since the beginning of the year that China may be thinking about changing its crypto policy. The new Chinese central bank governor, Zhou Xiaochuan, said very positive things about bitcoin and cryptocurrencies. And it seems that there is no option for the giant country to avoid the trend that the world is not experiencing. China Chinese Flag

The article says:

“Fencing off Bitcoin exchanges can’t effectively end bitcoin trade, and fears of a bitcoin bubble could leave China behind in the digital currency revolution.”  

At the same time, the article states that the replacement of paper money and coins by digital assets is inevitable. Moreover, the country is planning to issue a national cryptocurrency, but it is not clear whether it will be a national virtual currency or a CBDG.

This editorial at this newspaper may be a signal for the market. Is China saying that it wants to relax its cryptocurrency policies? May be this the beginning of a wide range of policies to start to liberalize the market?

All this information does not mean that the country suddenly likes Bitcoin. Indeed, they are worried about the volatility in the market and how prices move so drastically during time saying that it is a potential threat to the Chinese financial system.

The editorial also mentions the United States and what it is doing so as to control cryptocurrencies:

“[The] more proactive stance the US takes in regulating the cryptocurrency market… over time will contribute to digital currency sophistication in the world’s largest economy. It’s time for China to lay the regulatory groundwork for its rise as a future digital currency trendsetter.”