Last week, in another major effort to crack down on crypto, the Chinese central bank – People’s Bank of China (PBoC) – declared crypto transactions as illegal. This move seems to have a little effect on local investors who continue to show the skin in the game.
Speaking to Bloomberg, some of the local investors said that the move rather turned out as a new opportunity to buy. Bobby Lee, the chief executive officer of crypto wallet firm Ballet Global Inc. said that crackdown hasn’t been as bad as many thought. “I have bought some when it dipped. a dark cloud is removed,” he said.
Other local crypto holders from China also shared similar views. A Shanghai-based crypto investor Stephen said: “These policies are not new to us, so we view them as a buy signal”. He further stated that he bought the Bitcoin dip through OTC counters. However, he added that new investors might find it difficult o deal with it. “People new to crypto might feel scared. Some of them will quit,” said Stephen.
Long Term Investors Find Workarounds
Chinese investors said that such moves won’t deter players who have been in the crypto game for a long time. These players usually find workarounds. As we already reported, post the China ban, crypto trading volumes on decentralized exchanges (DEXs) like dYdX and Uniswap shot up significantly.
Stephen told Bloomberg that while the Chinese government has mined trading and mining of Bitcoin and other digital assets it won’t put an outright ban on holding them since a decision is too difficult to enforce. “The government is smart,” he said. “They won’t issue a policy they cannot implement.”