China was once called a sleeping dragon, but it proved otherwise when it became the economic powerhouse of today’s Asia. With huge resources, unlimited manpower, and innovative technologies, it has quickly become a global player capable of influencing market movements and decisions.
Its impact has spread to many industries and has not spared the Bitcoin market. Currently, China owns a significant portion of the world’s cryptocurrency transactions, and reports showing the Chinese Bitcoin market account for more than 80 percent of Bitcoin and altcoin transactions.
Slight changes in the Chinese market may therefore have a significant impact on the global situation and may be reflected in cryptocurrency settings.
Bitcoin to the rescue after the devaluation of the yuan
A few days ago, the Bitcoin exchange rate apparently shifted after the People’s Bank of China (PBOC) cut interest rates on the yuan, which led to its devaluation. Investors decided to exchange their yuan for Bitcoin in order to save the equivalent value of the amount, thus registering a strong movement on the BTC / CNY chart.
Analysts see yuan owners converting their son’s money into Bitcoin and possibly exchanging them back for yuan or US dollars. The choice depends on the market performance of the digital currency, where a positive move will force investors to convert Bitcoin into yuan, while a price drop will present a conversion to the US dollar as a better solution.
As the devaluation of the yuan affects the global market, China’s strength will become apparent. This is further reflected in the effects on the bitcoin market, of which Chinese bitcoins are largely responsible for getting closer to achieving the goals of the digital currency.
There is no doubt about the important role that China plays in the success of Bitcoin, and this raises concerns about whether or not to regulate the cryptocurrency.
Is China ready to regulate Bitcoin?
For some, the word “regulation” alone, when used in the context of Bitcoin, is reason enough to have a defensive purpose. This explains the feelings after Leon Li, CEO of Huobi, published the journal Bitcoin Regulation in China .
Li said the legal barriers imposed by the PBOC are hampering the growth of the Chinese Bitcoin market in the local arena. Its market, home to the world’s largest commercial and mining operations, is full of potential, and that’s why he thinks it’s time to regulate Bitcoin.
His diary said:
“Bitcoin and blockchain research needs to be strongly encouraged and supported. Chinese regulators need to look at how other jurisdictions, such as the United States, are opening their heads towards better policies in the digital currency sector… This would reduce certain risks for both businesses and consumers. ”
One of China’s largest Bitcoin exchanges, Huobi, continues to provide services after the PBOC ban, and its CEO is determined to deliver secure payment systems that are cheaper for traders and consumers in the end.
In addition, Bitcoin exchange , BTC China and OKCoin is one of the key players in the Chinese bitcoin market, which has not yet expressed support for Bitcoin and cryptocurrency regulation .
Consequences of market changes in the Bitcoin gaming sector
China’s strength in the Bitcoin market is obvious, but it remains a question of how this will work in the Bitcoin gaming sector inside and outside the country.
The Asian giant is known for its strict gambling policy, despite the fact that the illegal gambling market continues to generate significant revenues from the government. Macau is the newest gambling center, while Hong Kong continues to be a supporter of legal offshore gambling.
However, the Chinese gambling industry in China has not yet established a complete fund, which explains why a regulation could hinder its further growth. Nonetheless, China’s influence on the market price, even on Bitcoin, offers countless opportunities for a thriving industry to expand in Asia.
If the Chinese Bitcoin market becomes the biggest supporter and promoter of cryptocurrency, it’s really worth waiting for what the future holds for Bitcoin and cryptocurrency in general.