Recent changes made by the People’s Bank of China (PBOC) have put an end to rumours that the country may relax its limitations on trading in digital assets. Many in the industry anticipated that China may think about loosening its anti-crypto regulations, especially after showing support for Hong Kong’s desire to become a crypto hub. However, it is clear that with the hiring of a new high official at PBOC, the emphasis is still on maintaining continuity in the coverage, rather than making any significant changes.
Business leaders, such as Circle Web Monetary Ltd. CEO Jeremy Allaire, saw promise in Beijing’s support for Hong Kong’s plans to establish itself as a crypto hub, which led them to believe that China would reconsider its anti-crypto laws. However, Pan Gongsheng’s nomination as the top Communist Party official at the People’s Bank of China serves as a timely warning that policy continuity is likely to be preserved.
The choice of Pan indicates that he will probably serve as PBOC governor, and it shows that the regime wants to uphold its 2021 pronouncement that all transactions involving cryptocurrencies are illegal. Furthermore, a Chinese language bureaucrat has expressed interest in a handful of Pan’s earlier comments during a previous crypto clampdown due to their colourful and peculiar nature.
China’s Unwavering Position on Crypto
Pan Gongsheng’s current position on cryptocurrencies and the future of China’s restriction on digital property have not been made public by the People’s Bank of China (PBOC). Consultants believe that Pan’s appointment strengthens the PBOC’s adamant resistance to Bitcoin, including Bloomberg economist David Qu. The PBOC governors have always opposed Bitcoin, and mainland China views Hong Kong’s progress as inconsequential because it sees the city as an outside market.
Senior personnel outside the central bank are also unsure about Bitcoin as the federal government continues to concentrate on the development of the digital yuan.
China’s Crypto Ban and Doubts About Quick Changes
Despite growing cryptocurrency narratives that suggest China’s ban may be loosening due to Hong Kong’s pro-crypto tilt, industry leaders like Justin Solar and Changpeng Zhao have faced difficulties in the United States. While there is a global shift in favour of crypto-friendly countries, experts advise against expecting a direct relaxation of the restriction in mainland China.
The Chinese government’s crackdown on cryptocurrencies has been motivated by concerns about money laundering, environmental impact, and capital outflows.
However, Changpeng Zhao mentioned a promising development in May.