Fake news has been going round in the past 24 hours after a crypto news publication site reported that the Chinese government reversed a crypto ban imposed in 2017. The fake news report has the title - China Lifts Bitcoin Ban; Individuals and Businesses Can Now Own Cryptocurrencies Legally.
Sadly, the report has been shared massively by unsuspecting members of the crypto community who hope that the situation around China changes soon. The fact is that the situation hasn’t changed and there are no reasons to raise false hope in the industry.
The false news article is based on a tweet made by CnLedger, a twitter account that is popularly for reporting about how blockchain and cryptocurrencies are faring in China. In the tweet which you can view below, a Shenzhen Court of International Arbitration ruled that bitcoin is protected by Chinese law and for this reason, citizens were not forbidden to own or transfer it.
But this does not in anyway suggest that the Chinese central government has lifted the ban that it placed on cryptocurrencies last year. The court verdict technically allowed ownership of bitcoin as property by individuals because it has an economic value attached to it.
In other words, this means that anyone could use bitcoin to pay for goods and services if the merchant decides to accept it and no one would hold the parties responsible. This is illustrated by the fact that the Ethereum Hotel in China still accepts ETH as a payment method.
There is no doubt that the news was overhyped when it was supposed to give a glimpse of hope that the crypto situation in China is improving.
Crypto Markets Remain Stagnant
For one thing, any reversal of the crypto ban in China would likely cause a growth in the crypto markets since the aftermath of the ban was a massive market decline. Bitcoin prices have hovered around $6300-6500 since that tweet was made by CnLedger showing no signs that Chinese traders are back.
Additionally, there are no indications that any of cryptocurrency exchanges and websites who shut down because of the original ban are back in business. The Peoples Bank of China banned local banks from doing business with the crypto exchanges, and the situation has remained this way until now.
The overhyped news will only cause more damage to the current bear market in the long run since it will only raise hopes for a few days. Meanwhile, the crypto community will still be optimistic that the reversal of the blanket ban on the new asset class happens soon.