Will China Unban Bitcoin and Other Cryptocurrencies in 2024?

Tron founder Justin Sun recently added fuel to the ongoing rumor that China is going to lift the ban on cryptocurrencies.

Galaxy Digital CEO Mike Novogratz recently suggested on Twitter that China may consider lifting the ban on Bitcoin (BTC) by late 2024. However, the credibility of this rumor is questionable.

Earlier this month, Tron founder Justin Sun sparked a buzz online by suggesting that China may be preparing to lift the ban on cryptocurrencies. On Sunday, August 18, Sun shared a tweet stating “China unbans crypto. What’s the best meme for this? ”

This tweet was sufficient to ignite a discussion on the topic, despite the absence of any official confirmation. China imposed a complete ban on crypto and Bitcoin trading activities in 2018. Later, in 2021, the country, which was once home to the world’s largest crypto miners, also introduced a ban on Bitcoin mining.

However, as crypto penetrates the global financial market, China is reconsidering its stance. According to reports, the Chinese administration is using Hong Kong as a proxy to gradually reintroduce crypto activity. Over the past year, regulators in Hong Kong have been actively introducing crypto regulations in the market, including the introduction of regulated investment products such as the Bitcoin ETF and Ethereum ETF.

Prompted by the Chinese administration, Hong Kong appears to be emerging as the crypto capital of Asia, rivaling other major markets such as South Korea and Japan.

China may gradually ease crypto ban

The rumor of China lifting the crypto ban is not new. Last month, Galaxy Digital CEO Mike Novogratz hinted in a tweet on X platform that China may consider lifting the ban on Bitcoin by late 2024. “If this is true, and it’s the second time I’ve heard in weeks, it’s a huge deal,” Novogratz said.

However, Novogratz later deleted the tweet. His statement was also met with skepticism. Due to the recurring cycle of speculation, people are becoming less inclined to take these rumors seriously. Some suggest that even if China were to adjust its stance, it would likely be a gradual shift rather than an abrupt reversal.

China will be closely monitoring the developments in the United States, where both parties – Republicans and Democrats – have been showing interest in the crypto market. Former President Donald Trump has also hinted at the possibility of holding Bitcoin as a reserve asset for the US and issuing crypto checks to reduce the $35 trillion US debt.