Bobby Lee, the CEO of Ballet and a maximalist of Bitcoin (BTC), talked about the implications of the ongoing crackdown of China on cryptocurrency. Although the government is supporting the digital renminbi, Lee proposes that Beijing is not interested in expanding the crypto industry. Lee, based on his collaboration with the government of China in the course of acting as the CEO of BTCChina, stated that the country intends to regulate the digital currencies for achieving its predominant target of globalizing the digital RMB.
He further mentioned that the vast exosystem of the digital currency, which is present in the area, is being neglected by the government. Moreover, he expressed that the authorities are gradually mounting their frame of action against the crypto community as the beginning of serious regulatory scrutiny occurred in 2017, and it is expected that they would put a straight ban on crypto in the next 4 or 5 years.
According to Lee, the previous ban of the country over the mining of cryptocurrencies and their trading appears to be a move to prevent the common masses from being significantly involved in the investments which are highly risky and to prevent the spike in the trading volumes of the digital currencies. Furthermore, Lee suggests that there is no direct competition between the digital yuan and Bitcoin, and BTC would not get hurt by the withdrawal of China.
The decentralized international network of Bitcoin that Lee is CEO of has made him believe that the crypto market will not be affected by China’s acceptance or ban over Bitcoin ultimately. Lee anticipates that the extreme measure, at present, will be a full-fledged ban over the BTC as well as the rest of the cryptocurrencies. However, keeping an eye on the highly significant involvement of the predominant businesses as well as the constantly expediting initiatives of the government, China is unwillingly allowing the individuals to trade and hold Bitcoin while continuously imposing restrictions.
As a result of the latest crypto regulations of China over risky trading, some proactive moves are being taken by the crypto businesses to make the ecosystem survive the forthcoming severe situations. A recent report regarding the newly made advancement revealed that FTX had given an announcement to fix a limit of 20x for the leverage over its trading, which is reduced from the previous percentage of 101x.