The crypto space is buzzing again about the possibility of China unbanning Bitcoin. Earlier today, multipel twitter accounts including that of crypto news agency @bitcoinIfgo spread the news in the tweet that China is ”likely to unban Bitcoin by the end of the year.”.
Although there’s no official confirmation yet from the Chinese government, it is hard to ignore, especially considering how strict China has been with crypto regulations.
Why is the Rumor Spreading Now?
On Sept. 25, 2024, the Shanghai No.2 Intermediate People’s Court, for the first time after the ban, acknowledged Bitcoin as a legal digital currency. The courts described Bitcoin as “non-replicable” and highlighted its scarcity and ease of use as a currency.
However, the court ruling did not mention if China is suddenly opening to Bitcoin trading or mining again. But it gives Bitcoin more legitimacy in China’s legal system. In contrast, with Bitcoin being treated as property, it gives the idea that the government might unban Bitcoin after all.
Moreover, the rumor surrounding this unban is not new. It recently picked up steam in July 2024, when Galaxy Digital CEO Mike Novogratz tweeted about hearing whispers that China might lift its Bitcoin ban. His post made headlines, but others doubted the information.
In the comment, one user said that the government “have banned it like six times, and nothing has happened. The same thing will happen when they ‘un-ban’ it multiple times.”
The first time ban was in 2017 when the government cracked down on crypto exchange, and then in 2021, they banned bitcoin mining entirely, forcing miners to move their operations out of the country. At the moment, Bitcoin trading with the Chinese yuan has been stopped.
Despite this, Bitcoin itself is still legally recognized as personal property under the law. This means that the people can own Bitcoin, but they can’t trade or mine it without breaking the law.
While this new rumor has not been confirmed yet, China unbanning Bitcoin would be big news for the crypto space.
Also Read: China to Unban Bitcoin? Crypto Community Remains Skeptical
