Wang Pengjie who is a member of the political advisory committee of China recently commented that the People’s Bank of China, as well as the China Securities Regulatory Commission (CSRC), should create a cryptocurrency trading platform. The platform will work at a national level.
His remarks are important as it seems to indicate that China is finally moving away from its belief that cryptocurrencies should be banned. Since September of last year, all the ICOs are banned in China, and authorities have gone after cryptocurrency exchanges as well.
He further added that with the market cap of various cryptocurrencies, like Bitcoin, Ethereum and Litecoin, rising above the market cap of the largest internet provider in China, Tencent, cryptocurrencies can no longer be ignored. This is the reason why he mentioned China should pay attention to blockchain technology as well as cryptocurrencies. He also highlighted that South Korea, as well as the US, are looking into cryptocurrency regulations as well as futures of cryptocurrencies like Bitcoin.
He further added that the cryptocurrency trading platforms should be by approval only. This will ensure that only carefully selected and curated currencies are traded on these platforms.
If indeed, China draws up plans for such a cryptocurrency exchange, it will be welcome news. The Chinese cryptocurrency volumes have fallen significantly since last year. This is because most of the people are not sure whether it is legal to trade in cryptocurrency in China or not. This is the reason why investors are also staying away. The current market share in cryptocurrency volume of China is just 2%. Till a few months back, it was above 20%.
If indeed, there is a proper regulatory framework or legalization of cryptocurrency trading, the volumes will increase significantly. This is the reason why any such move by the Chinese government will be a huge positive for most of the cryptocurrencies. The trading volumes of most of the cryptocurrencies will jump up significantly if indeed, China launches such a nationalized cryptocurrency trading platform. On the other hand, there is no official news yet as to whether the suggestions by one of the member are actually taken seriously by the government or not. This is the reason why many cryptocurrency investors are waiting with bated breath to find out if the government actually considers launching a cryptocurrency platform.