One of China’s earliest crypto backers has suggested that the country’s crackdown on cryptocurrency mining and trading could escalate further and lead to a full-fledged ban on private digital assets. Bobby Lee, the former owner of China’s first crypto exchange BTCC, thinks there’s a 50 percent chance in the future that Beijing will entirely ban cryptocurrencies.
Complete Ban Might Be on the Cards: China’s Earliest Crypto Backer
In a recent interview with Bloomberg, entrepreneur and early Bitcoin mogul Bobby Lee indicated that China could opt for a blanket ban on cryptos. Lee is well aware of the country’s hardline stance against Bitcoin and other assets of its ilk. He sold his crypto exchange BTC China — at one point the world’s second-largest trading platform — in the aftermath of the restrictions imposed in 2017.
“The next thing they could do, the final straw, would be something like banning cryptocurrency altogether,” Lee told the publication.
The entrepreneur recently returned to China and is working on his new enterprise Ballet Global Inc, which manufactures a hard wallet to store digital assets. Lee is very much a Bitcoin bull who predicts the currency could reach $250,000 by the end of this year.
Bitcoin Could be Banned Once It Touches $500K
Lee opined that China’s tighter restrictions on digital currencies were motivated by concerns over financial stability. He said that the country did not factor in renewable energy-powered mining in its decision. This highlights that environmental concerns did not guide the Chinese government’s regulations.
Furthermore, he added that China could move forward with an absolute ban on the industry. Right now, the country has simply restricted trading and mining of virtual currencies, but investors are not barred from holding them. This could change if Bitcoin prices reach a certain selling point.
“When Bitcoin goes to $500,000, $1 million, China might ban Bitcoin altogether when people are no longer allowed to hold it. And that’s gonna be a lot of selling pressure on Bitcoin at that time. I put the odds at 50-50,” Lee noted.
Digital Yuan Is Not a Real Successor to Cryptocurrencies
As per Lee, China’s influence on the global crypto market will diminish with time as it continues to clamp down on exchanges and crypto-businesses. He stated that there will be a time when Bitcoin’s future wouldn’t hinge on China and that would be a great thing for the currency.
“Trading crypto will be a thing of the past, once you get past this year. And in a way, it’s a good thing for crypto because, in my heart, I always knew that Bitcoin’s success never depended on China. Just like it doesn’t depend on any one country, any one group of people.”
Lee also denied that China’s soon-to-be-launched CBDC would unseat cryptocurrencies in any form. He asserted that the digital yuan is designed to replace fiat money and its development had no connection with the rules enforced on the crypto industry.
As for trends, Lee said that decentralized finance (DeFi) and NFTs are currently hot in China. Although, he feels that they are surrounded by a lot of hype, which will only become stronger once the bull market arrives.