Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

China’s ‘Whack a Mole’ Approach to Regulation Unlikely to Stop Crypto Train

CryptocurrencySep 24, 2021 23:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com – Bitcoin fell Friday as China vowed to crackdown on cryptocurrency once again, but Beijing’s ‘whack-a-mole’ approach to crypto regulation is wearing thin and unlikely to severely dent broader demand just as Western adoption is on the up and up. 

BTC/USD fell 4% to 42,971, but recovered some losses after a dipping below $40,000.

China’s central bank deemed all digital currency activities illegal and vowed to crack down on the market. But that doesn’t imply that there will be “ban on holding positions in cryptocurrencies,” Seamus Donoghue, VP of Strategic Alliances at METACO told Investing.com in an interview on Friday. 

While China’s approach to cryptocurrency regulation “can have a good deal of success, it's a little bit of a whack a mole,” according to Donoghue.

“China's is going to be less relevant ... as the trend of Western adoption - given all the banks and other institutions building blockchain capabilities - is increasing dramatically and rapidly,” Donoghue  added, pointing to a similar change seen recently in the cryptocurrency mining.

A potential exodus of crypto investors in China had sent shockwaves throughout the industry, as investors fretted about a potential hit to demand, but Beijing’s sway over crypto’s markets in terms of adoption isn’t as significant as it once was. 

“Last year, China ranked fourth on our global adoption index while the U.S. ranked sixth. This year, the U.S. ranks eighth while China ranks 13, “ according to research published by Chainalysis.

China has suggested a clamp down on illegal activity is at the heart of its decision to step up regulation on cryptos .But Beijing’s regulatory efforts on crypto could form part of a strategy to lessen the competition amid plans to launch its very own digital currency.

“China's has been trialing and is in the process of launching their own digital currency,” Donoghue said. “That could be one of the reasons for them to focus on minimizing the potential penetration of virtual currencies.”

It wouldn’t be the first time that China has stepped up the regulatory heat on foreign tech - that threatens to gain a foothold in its markets - to buy time for the launch of its own rival domestic firms.

Looking at China’s historical reaction to overseas tech, “they've banned Facebook (NASDAQ:FB), Google (NASDAQ:GOOGL), WhatsApp … all to launch their own their own domestic versions,” Donoghue added. “Now, they're banning crypto to launch their own domestic currency.”

China’s ‘Whack a Mole’ Approach to Regulation Unlikely to Stop Crypto Train
 

Related Articles

Shiba Inu surge continues as Robinhood hints at listing
Shiba Inu surge continues as Robinhood hints at listing By Investing.com - Oct 27, 2021

By Samuel Indyk Investing.com – Shiba Inu was up another 25% on Wednesday morning after executives from the popular US trading platform Robinhood (NASDAQ:HOOD) hinted that the coin...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email