When most people hear about buying Bitcoin (BTC) or other cryptocurrencies, they immediately think of the largest exchanges, most of which are located in Asia. Today, countries such as China and South Korea have become epicenters of blockchain innovation. However, in many countries, it’s still unclear whether cryptocurrencies are allowed, and if they are, what their status is.
So, here’s how the regulation of the cryptocurrency market in Asia is shaping up and what should be expected from governments in the near future.
China goes digital with the yuan
Today, China is home to many cryptocurrency projects and exchanges, and yet, crypto has actually been banned for several years now. In 2017, the People’s Bank of China, the nation’s central bank, banned initial coin offerings and cryptocurrency exchanges. Then the Shanghai branch of the PBoC announced its intention to root out the crypto industry in the country, equating the token sales to the illegal placement of securities or fundraising. Soon, the biggest crypto exchanges in the country, Huobi and OKCoin, announced they had stopped local trading.
The turning point came in July 2019 when a Chinese court ruled that Bitcoin was digital property. The court’s decision marked a shift in cryptocurrency adoption, and in October 2019, Chinese President Xi Jinping called for an increase in blockchain development efforts. Furthermore, the PBoC has said it’s prioritizing the launch of a central bank digital currency. However, the Chinese government is still quite cautious in