On August 18, Justin Sun sparked intense speculation in the cryptocurrency community with a provocative tweet that read, “China unbans crypto. What’s the best meme for this?” This post quickly fueled discussions and speculation among enthusiasts and industry insiders, creating notable ripples throughout the market.
Chase, the co-founder of the Solana Virtual Machine (SVM) blockchain project Molecule, added to the speculation . Reacting to Sun’s tweet, he remarked that China had “shadow-unbanned” crypto years earlier, suggesting a more nuanced approach to the ban than publicly acknowledged.
The recent tweet has ignited conversations within the cryptocurrency community, yet no official confirmation or solid evidence supports the claim.
China Crypto Unban Rumors Met with Caution
However, this isn’t the first time such rumors have circulated. On July 14, Mike Novogratz, CEO of Galaxy Digital, tweeted about hearing reports that China might lift its Bitcoin ban by late 2024. “If this is true, and it’s the second time I’ve heard in weeks, it’s a huge deal,” Novogratz then stated, though he later deleted the tweet, acknowledging the need for more information.
His remarks were met with skepticism, as one user on X noted that this would heavily impact the Chinese currency and eventually, if it happens, it would be “heavily guarded”.
In 2021, China enforced a comprehensive ban on cryptocurrencies, leading to a significant 50% drop in Bitcoin’s value and prompting cryptocurrency miners to leave the country. The government justified this severe action as a means to combat financial crimes and safeguard the financial system, which markedly shifted the global cryptocurrency regulatory landscape.
Justin Sun Legal Victory
Since then, there has been continual speculation about China potentially easing its strict crypto policies. This speculation has been particularly fueled by recent events, such as Justin Sun’s recent legal victory, which suggests a possible softening stance towards cryptocurrencies.
In June, Justin Sun, the founder of Tron, secured a significant legal win in the People’s Court of China against the Chongqing Business Media Group, which had accused him of engaging in fraudulent activities. This victory is sparking discussions about whether it could indicate a change in China’s strict anti-crypto policies.
Despite widespread skepticism regarding the impartiality of Chinese courts and the country’s firm stance against cryptocurrencies, Sun’s triumph challenges the perception that legal outcomes in crypto-related cases in China are uniformly negative or prejudicial.
China Warns Against Bitcoin ETF Investing
In March this year, the Chinese government-backed publication Economic Daily reiterated its caution against investing in cryptocurrencies, particularly in light of recent enthusiasm surrounding the approval of Bitcoin ETFs in the United States. The article expressed concerns about the implications of these new investment products being accessible to residents of mainland China.
Nevertheless, significant cryptocurrency activity persists in China, suggesting that the ongoing warnings might be aimed at controlling this underlying and continued engagement with digital currencies.
