China, has an image of no-go area for cryptocurrencies. But some pro-crypto moves are opening up the forbidden kingdom to cryptocurrencies. Recently, a local court has now allowed merchants to accept Bitcoin as a payment method. This recognizes cryptocurrency as a property, allowing individuals to own and transact with it.
The move is surprising for many in the cryptocurrency industry. Anyway it may open doors to a crypto future in the biggest manufacturing hub in the world. Gradually, China is working to legalize cryptocurrencies and open up their country.
Is China Opening up to Crypto?
According to local Chinese reports, the Shenzhen Court of International Arbitration announced this landmark decision. However, it also passed the buck to the regulatory authorities as according to the ruling, Bitcoin ownership and transfer shouldn’t be in conflict with existing financial regulations.
According to the verdict: “CN law does not forbid owning & transferring bitcoin, which should be protected by law because of its property nature and economic value.”
As a consequence of this decision, circulation and ownership of Bitcoin are now legal. This allow merchants to accept cryptocurrencies as payment without violation of the local law. While the law falls short of giving the same rights to Bitcoin as fiat currency, it is a step in the right direction.
Although the outside world believes that China has a blanket ban on cryptocurrencies, in reality, there is some adoption. A chinese reality TV show follows the journey of a young woman who has to survive traveling around China with just BTC 0.2 BTC in her phone. Watching the series, it becomes clear that China is progressing in the crypto world, with or without government intervention.
China is reportedly slowly opening up to Bitcoin and other cryptocurrencies as public penetration grows. Several hotels have started accepting payment in BTC. (only from foreigners) While others are providing wide-ranging services in exchange for Bitcoin.
It appears that it is only a matter of time before China lifts the blanket ban on cryptocurrencies and allows unprecedented international trade through it.