So the rumours that were rumbling out of china have seemingly been confirmed as BTCC, an exchange in China has decided to halt all trading of bitCoin on their website. As someone relatively new to the space its interesting to see the mass panic this has created. China are one of the largest miners of BTC in the world so this decision is somewhat strange but not at all unexpected. China has banned Twitter, Facebook and various other huge platforms so its not at all surprising.
So what does China do from here? Here are some things that I think could happen:
China bans all exchanges, whilst they begin plans on how to regulate or tax these exchanges before allowing them to accept trades again. Remember that one of the reasons that China has done this is because they are not rewarded at all from a monetary standpoint. Therefore, as the market cap begins to recover they will most probably begin tighter regulation or large taxes on BTC/ Crypto trading.
Another theory I have read about is that China may launch its OWN exchange, meaning that even though China as a Government do not make money from the capital appreciation in cryptocurrencies, they will make large amounts of profit from a commission standpoint.
Chinese banks and large investment funds buy bulk amounts of crypto at the bottom end of the market, and then allow exchanges to continue.
China wait for the dollar to recover after its recent bear run ( as china are large holders of the US dollar), buy crypto's with the dollar rather than their native currency (yuan), thus relieving fears that the dollar could see a major crash due to the uncertainty of the current economic climate.
Korea and other asian countries take advantage of the hole left by China due to the stranglehold they have on the general asian market, allowing large exchanges to flourish there thus boosting their respective economies. To retaliate China would perhaps have to allow their exchanges to function as well?
This is all pure speculation and my thoughts, but that's just where I think it could potentially go. I think the crypto ecosystem is now too large to fail, as McAfee often states 'Pandoras Box' has already been opened with respect to blockchain and BTC.
Resteems, Upvotes appreciated and would love to hear your thoughts on the future of Cryptos and China's influence on BTC in the future!
The hardest thing to understand in the world is the income tax.
- Albert Einstein
My bet is that china raise income/capital gains tax on crypto gains!
Einstein was a very wise man haha :)
Thanks for sharing with us @thefig
No problem man, hope you enjoyed it :)