China may be reconsidering its 2021 cryptocurrency ban, according to recent developments. Speculation has emerged that the country is exploring ways to relax its stance on digital assets, which could reshape the global crypto landscape. As one of the largest markets for Bitcoin and altcoins, China’s potential shift could bring significant changes to international markets.
Zhu Guangyao’s Significant Comments
Zhu Guangyao, former deputy finance minister of China, recently suggested that the country’s current approach to cryptocurrencies should be reevaluated. He described crypto assets as “vital to the development of the digital economy” and pointed to the growing acceptance of crypto in the United States as a signal for China. According to Guangyao, China must adapt to the changing global landscape by reconsidering its rigid stance on Bitcoin and altcoins.
These comments, coming from a senior figure like Guangyao, could have a profound impact on China’s future crypto policies. Analysts from the U.S.-based crypto exchange Coinbase, including David Duong and David Han, emphasized that such statements might signal positive momentum for the crypto asset class in China.
Market Dynamics Amid Uncertainty
Coinbase’s latest report also highlighted significant market activity this week, with over $700 million in leveraged positions being liquidated due to market volatility. This marked the highest weekly liquidation since the volatility seen in early August. Analysts noted a decrease in leverage ratios following the market dip, indicating a more balanced market stance.
Popular cryptocurrencies like BTC and ETH saw their annualized funding rates drop from 10-11% to around 5-7%. This suggests that investors are growing more cautious, leading to the possibility of a more stable market structure as macroeconomic catalysts continue to play out.
Despite the regulatory hurdles, cryptocurrency demand in China has continued to grow. However, the ongoing legal uncertainties and state policies remain key obstacles for market participants. Nevertheless, Guangyao’s statements and Coinbase’s insights indicate that China’s approach to Bitcoin and altcoin regulation could evolve in the near future.
Turkish NY Radio will continue to monitor these developments as they unfold, keeping readers informed about China’s evolving role in the global crypto market.
