- Economic Daily warns against bitcoin investment amid China’s crypto ban.
- Bitcoin Ordinals market sees significant trading volume, indicating persistent crypto interest.
In a recent publication by Economic Daily, a Chinese state-owned media outlet, a stern warning was issued regarding the volatile nature of bitcoin amidst its soaring prices. The article serves as a reminder of China’s stringent stance against cryptocurrency trading, juxtaposing the nation’s policy with the global uptick in crypto activities.
This appears to confirm that China is preparing to tighten crypto regulations with revised AML laws in 2025, previously reported by ETHNews.
China Reiterates Crypto Caution Amid Bitcoin Rally
Despite the burgeoning interest in cryptocurrencies worldwide, with countries like the United States embracing the innovation by allowing the listing of spot bitcoin exchange-traded funds (ETFs), China remains steadfast in its prohibition.
The Economic Daily’s piece reiterates the need for investors to exercise caution, highlighting the fact that bitcoin and its related products have not yet secured a spot in mainstream financial markets.
This cautionary stance is further underscored by the legal perspective offered by Xiao Sa, a Beijing-based lawyer. Xiao’s insights shed light on the implications of China’s sweeping ban, which effectively bars overseas bitcoin ETF dealers from engaging with Chinese residents.
Moreover, the ban prevents investors within the mainland from directly acquiring such financial products, reinforcing the nation’s resolve to control crypto-related activities.
The roots of China’s crypto crackdown trace back to September 2021, when pivotal regulatory bodies, including the People’s Bank of China and the Supreme People’s Court, collectively issued a notice outlawing all forms of crypto trading on the mainland.
This decree deemed any service rendered by overseas crypto exchanges to Chinese residents as illicit financial activities, a move that aimed to clamp down on the burgeoning crypto market within its borders.
Despite these stringent measures, the allure of cryptocurrencies remains undiminished among many Chinese investors, who continue to seek avenues to participate in the global crypto market, albeit through more covert means. For a deeper dive into these advancements, a detailed explanation is available in this CNF Youtube video.
Surge in Ordinals Trading Volume
Adding a new dimension to the narrative, Wu Blockchain, a prominent Chinese crypto journalist, recently highlighted a significant uptick in the Bitcoin Ordinals market.
On March 3, the trading volume of the Bitcoin Ordinals trading market reached US$51.14 million, the highest since December 18 last year, of which Magic Eden’s trading volume reached US$39.29 million, accounting for 76.8%. The number of transactions and trading users of Bitcoin…
— Wu Blockchain (@WuBlockchain) March 4, 2024
On March 3rd, the trading volume for Bitcoin Ordinals reached a staggering $51.14 million, marking the highest point since December 18th of the previous year.
This surge in activity was predominantly seen on Magic Eden, accounting for 76.8% of the total volume, with transaction and user numbers for Bitcoin Ordinals also witnessing a remarkable recovery, reaching levels not seen since late December.
At the time of writing, the price of BTC has risen 5.00% in the last 24 hours, reaching a price of $64,979.02. This represents an increase of 26.83% over the past 7 days.