China Turns Bullish on Crypto? Plans to Bring Regulations

• China’s Ministry of Science and Technology has publicly recognized and emphasized the strategic importance of the Web3 industry.
• Bitcoin’s price has doubled to $44,000, reflecting a significant 163% rally over the past year.

China appears to be embracing the digital asset revolution, signaling a major shift in its stance on cryptocurrencies. Despite a strict crypto trading ban in 2021 that led to a market shack, the country is now expressing a newfound commitment to the development of the crypto industry.

The Ministry of Science and Technology in China, represented by Yin Hejun, has issued a written response to the proposal of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), highlighting the government’s recognition of the importance of the Web3 industry. 

The statement outlines China’s strong industrial foundation and emphasizes its extensive development potential in the realm of Web3, encompassing policy support, technical research, and real-world applications.

This unexpected change is underscored by official guidelines on blockchain technology and ongoing blockchain innovation pilots exploring diverse use cases, ranging from trade finance to intellectual property. The government’s acknowledgment of the substantial growth opportunities within the Web3 sector reflects a strategic move towards embracing the digital revolution.

Crypto Market on the Rise

China, known for its 2021 ban on Bitcoin and crypto trading that sent shockwaves through the market, is now expressing a renewed interest in the financial landscape. 

Currently, the global cryptocurrency market, dominated by major players such as Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL), has experienced a remarkable surge in value, surpassing the market cap of $1.6 trillion. 

The Bitcoin price has more than doubled to $44,000. Over the past 12 months, BTC has been overshadowed by a significant performance with a 163% surge. It has seen its market cap increase to $853 billion. Also, altcoin Solana rose extraordinarily and emerged as a standout performer. SOL leaves early investors with substantial gains.

In a global context, the People’s Bank of China (PBC) has emphasized the need for international cooperation in regulating crypto assets. Citing similar concerns, France also recognizes the risks associated with crypto assets and calls for strengthened international supervision to establish a unified approach to crypto regulation.