As the world moves towards regulating crypto for its adoption, China’s indecisiveness about crypto and the proposal to ban the mining of crypto could be an area of conflict. In June, the People’s Bank of China [PBOC] in a statement said that it would block access to all domestic and foreign crypto exchanges along with ICO websites.
However, China is believed to carry out most of Bitcoin’s mining and according to CoinShares’ estimate, no more than 60% of hash power currently remain within Chinese borders. A ban on crypto and on mining could prove detrimental for its crypto ecosystem. Brian Armstrong, the CEO of Coinbase talked about the stringent ban of services in the country and said:
“For all China’s strengths, censorship is probably one of the biggest areas holding them back. Perhaps I’m naive, but I think people are smart/resourceful, can sense when they are being misled, and will eventually find a way.”
Even though Armstrong pointed out that the country took the step to ban several different commodities on its 1.3 billion population, he noted that technology has always pushed the boundaries. The CEO added:
“Projects like StarLink, Google Loon, etc can start to offer unfiltered internet over countries like China/North Korea. VPNs could also become much easier to use (free, baked into the OS, always on).”
Ethereum classic’s developer, Anthony Lusardi, also noted that VPNs are still available and were widely used in the country to access banned websites. Even Larry Cermak of The Block noted that there was a noticeable spike in Google searches for exchanges with predominantly Asian demographics like OKEx and Huobi. According to online data service providers (Qimai and Kuchuan), Huobi was the seventh hottest keyword searched on Chines IOS Apps stores.
As China figures out a way out of Crypto, its largest financial news provider, Sina Finance, has added Bitcoin and cryptocurrency support to its application, along with the crypto enthusiasts in the country that have figured ways to access crypto.