Bitcoin in China Still Legal

Bitcoin in China Still Legal

On March 24th this year, iceCUBED assured its clients that Bitcoin was very much legal in China.

We would like to emphasise that this is still true, despite all the hype and speculation.

Earlier this month again, speculation about the status of Bitcoin in China.

This was after some leading Chinese exchanges received notification from their bankers that their accounts would be closed.

It seems the action by these banks is merely an extension of the PBOC’s original announcement in December, preventing banks and financial institutions from using the technology.

The news has affected the Bitcoin and Litecoin price greatly, dropping as low as US$ 350 on some exchanges.

However, the price has recovered on news that the Governor of the People’s Bank of China (PBOC) issued some clarification about the Central Bank’s position.

Essentially the PBOC stated that China would not act to ban Bitcoin, Litecoin and other digital currencies: “It is out of the question of banning bitcoin as it is not started by central bank.”

The central bank went on to say that they consider Bitcoin and Litecoin as “[…] more a kind of tradable and collectible asset, such as stamps rather than a payment currency.”

It climbed some 18% after the clarification, passing US$420.

CEO of BTC China, one of the countries leading exchanges, said that “[…] there’s no doubt in my mind that these activities are legal and allowed […] it’s just about what hoops you have to jump through to conduct these activities.” He went on to add that “[…] everythign will have ups and downs.”

It seems his assessment is correct. The PBOC has made it very clear in their statements that they “[…] don’t want to suppress or discriminate against bitcoin, we are simply saying it is not a currency.”

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