China legalises Bitcoin
The decree announcing China’s blanket Bitcoin ban has been revoked by the Shenzhen Court of International Arbitration. The same court that announced and imposed the ban back in 2017. Now, China is ready to regulate and regularise the market in the country.
As of this week, Bitcoin and the subsequent altcoins in the market are no longer considered illegal in the country. Bitcoin is now recognised as a form of payment for good and services and can also be bought and stored legally in the country.
The blanket ban was imposed at the end of 2017 and has been in place until now. The ban that the Shenzhen Court of International Arbitration imposed affected the market hugely because it led to the fall of Bitcoin price and also the shutting down of many leading exchanges and platforms. Back when the announcement was made, the price of Bitcoin fell by almost over 20% in a matter of hours.
The price fall was, of course, a reaction to the government’s policy and also largely attributed to the mass shut down of the huge mining rigs that China is famous for. The announcement came when the price of Bitcoin was around $4,000 USD, right at the end of 2017.
Bitcoin Ban Lifted
The blanket ban which was announced by the Shenzhen Court of International Arbitration in 2017 was completely backed by the Chinese Government. It came at a time when Bitcoin was not very well known and what was known were its scandals, hacks and scams.
In order to safeguard its people from having to be subjected victims to the ploys of the market, the Chinese government announced a blanket ban on the market with immediate effect. This saw a large number of companies, businesses and exchanges shift or shut down completely.
China also happens to be the home of large mining rigs, which too were adversely affected by the blanket ban imposed by the Shenzhen Court of International Arbitration.
Almost two years on, the same court, i.e Shenzhen Court of International Arbitration, has revoked its decree and legalised the world’s first cryptocurrency; Bitcoin as a legal form of payment and has legalised its trade, storage and sale.
The revoking of the previous decree and the new one that has just been released allows businesses and companies to now lend services in exchange for digital assets like Bitcoin as payment. And also now re-invites all the cryptocurrency businesses that were forced to move out.
The Shenzhen Court of International Arbitration, as reported by local media, was quoted saying;
“Chinese court confirms Bitcoin is protected by law. Shenzhen Court of International Arbitration ruled a case involving cryptos. Inside the verdict: CN law does not forbid owning & transferring bitcoin, which should be protected by law because of its property nature and economic value.”
With this quote and the decree that follows, China has now legalised the use of Bitcoin in the country. The most popular opinion over why this step was taken to legalise it is that the country is trying to bypass the illegal activity that surrounds the cryptocurrency market, by personally regulating it.
While just how well this decree is going to be enacted is something only time can tell, this is a huge step towards the right direction by China, which has been one of the most resistant to the blockchain industry.
Good News For The Market
With the year about to end and the market chugging its way through the last part of the final quarter of 2018, China legalising Bitcoin is amazing news for the community and the market. But more so for the blockchain industry.
China has been one of the most resistant countries towards the blockchain industry and this decree lifting the ban may just be what the industry needs to make its move in the country.
Another major change that this decree will bring is that a lot more businesses and companies will now start accepting Bitcoin as a form of payment. And having the second largest economy legalising the currency is a huge win for the cryptocurrency market.
Must Read – Top 10 Crypto Altcoins to buy in November
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.