A recent survey of Chinese investors revealed that crypto enthusiasts have faced a difficult year. It noted that out of 574 respondents, around 59.8% reported losses in their crypto investments this year.
Among them, only 23% managed to see a profit. Out of the remaining lot (17.2%), people indicated their investments neither gained nor lost value, showcasing the volatile nature of the market in 2024, according to the survey.
The crypto market struggles this year can be attributed to factors like tightening regulations, a global economic slowdown, and increased scrutiny from financial institutions.
Chinese investors faced an even more complex scenario due to its stringent regulation on cryptocurrency trading and mining. China’s central bank announced that all transactions related to cryptocurrencies will be illegal, including digital tokens like Bitcoin.
The People’s Bank of China identified virtual currency-related business activities to be illegal and shared that it can endanger the safety of people’s assets. However, recently, speculations have been rife that China may be reconsidering its stance on cryptocurrency.
Justin Sun, founder of blockchain-based platform TRON, shared a cryptic post earlier on X, stating, “China unbans crypto. What’s the best meme for this?”
Rumors of China unbanning cryptocurrency have persisted, with market observers like Sun noting this could impact the global crypto space massively. China used to be one of the largest markets for cryptocurrencies, and lifting the ban would mean an increase in trading volumes and a rise in prices.
Amid the speculation, industry experts like Anndy Lian have discussed the potential for China to reconsider its cryptocurrency restrictions if Donald Trump were to win the upcoming U.S. presidential election. However, Lian noted that given the strained relations between Trump and Chinese President Xi Jinping, a complete reversal of China’s crypto policies is unlikely.
“#China to Lift Crypto Ban if #Trump Is elected? Trump and Xi are not BFFs. It will not unban. At most certain economic zones are granted special rights. For now, Hong Kong is the closest. Remember this,” he said.
His viewpoints reflect the existing complex geopolitical factors and the need for a nuanced understanding of China’s policy-making processes. As of now, investors and market analysts are closely monitoring these developments in the crypto space. The regulatory landscape remains firmly restrictive, without any indication of a policy reversal regarding cryptocurrencies.
Under current circumstances, financial institutions like the People’s Bank of China continue to enforce these regulations, while also working on its own central bank digital currency, the Digital Currency Electronic Payment (DCEP).
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
