After the closure of home platforms, Chinese language merchants turned to abroad markets, and the worldwide Bitcoin buying and selling panorama modified accordingly.
As I famous in 2021, among the many world’s ten largest economies, solely China prohibited banks and fee establishments from taking part in Bitcoin buying and selling. This sample has remained largely unchanged. In main economies similar to the US, Japan, Germany, the UK, and South Korea, Bitcoin stays authorized and freely tradable.
Since 2022, international financial turbulence and frequent rate of interest hikes by the U.S. Federal Reserve have drawn capital away from rising markets again to the U.S., putting extra stress on China’s financial system.
Notably after Donald Trump returned to energy, U.S. coverage on digital property underwent an important shift — from resistance to strategic absorption.
In 2024, Trump signed the Bitcoin Reserve Act, formally recognizing Bitcoin as a strategic reserve asset eligible for inclusion on the federal government stability sheet. The just lately handed GENIUS Act (Governing Digital Networks for Issued US-stablecoins) offered clear compliance pathways for stablecoins similar to USDC and USDT. These aren’t simply technical coverage shifts however front-line maneuvers in a contest over financial sovereignty.
In comparison with the U.S., which is leveraging Bitcoin to counter inflation and reinforce its financial dominance, China is extra targeted on sustaining industrial output, exports, and employment. With a still-dominant manufacturing base, China’s monetary coverage shouldn’t be aimed toward dominating international asset pricing, however moderately at buffering the uncertainties of home financial restructuring.
In response to Trump’s Commerce Conflict 2.0 — revived tariffs, provide chain disruptions, and tightened chip sanctions — China wants a steady monetary setting to soak up exterior shocks. “Stability” right here means distancing itself from all high-volatility property, regardless of how progressive.
Bitcoin, by nature risky and speculative, may — if tied to home monetary markets — set off a contagion of speculative habits and secondary monetary dangers.
Thus, tightening regulation doesn’t outright deny Bitcoin’s worth, however acts as a buffer zone, delaying potential shocks to China’s monetary system. With this context in thoughts, the challenges you face in shifting funds out and in of crypto turn out to be simpler to grasp.
