Bitcoin [BTC] received a major boost after Sa Xiao, Council Member at the Bank of China’s Law Research Association, said that it should be legal for people in China to own Bitcoin [BTC], despite the government’s ban on crypto transactions and assets.
The statement was released by @Cnledger, a notable crypto news source based out of China, and stated that Xiao believes that the “occasional exchange of Bitcoins between peer to peer in China should be considered legal.”
The statement is important with regard to China’s stance on crypto wherein the country has completely prohibited crypto-trading. The government tightened the ban in August 2018, after it requested Alipay, a widely utilized financial app, to crack down on over-the-counter [OTC] BTC trading.
Sa Xiao’s beliefs are based on the present legal framework which according to him, protects the population’s right to own virtual assets. He stated that occasional peer-to-peer trading of Bitcoin was one of the “rights of ownership” and it felt in the nature of “disposition right.” Hence, owning and occasional P2P transaction of Bitcoin and other virtual assets should be legal, he said.
However, Xiao cautioned that if an entity ran Bitcoin trading as a business and caused capital losses to its customers, there would be serious consequences against the individual, as s/he would be punishable under the criminal law of China.
The remarks made by the Bank of China representative received major attention on social media as people remained split on the statement.
Twitter user, @DolphinPay, stated,
“Nothing changed indeedly. Exchange between individuals to individuals in China still is [as has always been] legally blurred. Besides the facts, conclusions reported are legal opinions and wishful thinking. Which is not worthless, but is just a personal thought by Xiao.”
Another twitter user, @CryptoOutsource, responded,
“This is an individual’s opinion on the legal status of Bitcoin. This is not an official government position. But I do not expect the government to allow for Bitcoin to thrive as it is an excellent way to circumvent the tightening control they are applying to money.”
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Bitcoin’s censorship resistance, freedom make it a game changer in the economic industry
Over the years, the global economic industry has witnessed significant changes. However, no change has been more significant or essential than the one introduced by the concept of virtual assets or Bitcoin. Today, Bitcoin and other virtual currencies are almost as essential as fiat money and despite the fact that digital assets have not reached worldwide adoption, the pace of growth has been substantial.
In a recent panel discussion, Jedidiah Taylor, CEO and Founder of Decent.Bet, the smart contract-based sports betting platform, stated that the idea of Bitcoin and blockchain technology projected a perspective of freedom and honesty which allowed individuals to have direct control over their own capital, without any oversight supervision from financial institutions.
The sentiment was followed by Nico De Jonghe, Founder and CEO of NDJ Investment Group, who added that the threat of decentralized assets loomed the largest over centralized institutions like banks, who were worried of the future prospects offered by Bitcoin and its impact on the long-term financial situation.
Tone Vays, a reputable analyst and Bitcoin proponent, opined and stated that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention. The characteristic of censorship-resistant value transfer is also an absolute game-changer for Bitcoin, allowing it to competitively exist in the financial system.
The value of Bitcoin has often been criticized in the past, but its valuation has consistently proven its worth. In fact, Bitcoin has grown by more than 150 percent in 2019.
At press time, Bitcoin was priced at $11,371, with a market capitalization of over $202.18 billion. The staggering valuation of an asset that was unheard of 10 years ago, further underlines the potential of Bitcoin in the current market scenario and for the future economies.
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