China Warms Up to Crypto? Shanghai’s Rare Policy Summit Sparks Market Buzz

According to Reuters, Shanghai State-owned Assets Supervision and Administration Commission (SASAC) met with local government officials on Thursday to discuss stablecoin and digital currency regulation.

China has prohibited bitcoin since 2021, thus the 60-70-person summit may indicate a shift. Report: The regulator's director advised the gathering to have “greater sensitivity to emerging technologies and enhanced research into digital currencies.”

SASAC scheduled this meeting after internet titans JD.com and Ant Group pushed China's central bank to legalize yuan-based stablecoins and Hong Kong plans to launch stablecoin legislation on August 1.

JD.com and Ant Group are among 40+ Hong Kong stablecoin licensing applicants. However, local media source Yicai predicts that few hopefuls would be approved.

China's stringent capital restrictions make it uncertain whether Shanghai's conference will yield results. The country banned crypto in 2021. Financial system stability worries halted trade and mining.

The nation had half the worldwide Bitcoin mining processing power, or “Hashrate,” before the prohibition. The Hashrate plummeted as miners closed and moved after hearing about the crackdown.

While the prohibition initially hurt, BTC processing power recovered by 2022, demonstrating that the network swiftly recovered. The mining sector has grown since then, and the worldwide Hashrate is now five times the pre-ban value.

Cambridge stated earlier this year that 75% of Bitcoin mining activity is in the US.

China may have banned crypto, but the industry has grown abroad. Bitcoin smashed another milestone after passing $118,000, suggesting the global trend may be too large for the country to ignore.

#BTCBreaksATH #china #ETHBreaks3k #TrumpTariffs $BTC $ETH $XRP