China’s ‘whack-a-mole’ regulatory approach likely won’t derail the crypto train

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Seamus Donoghue, vice president of strategic alliances at METACO, said China’s approach to crypto regulation will not have a drastic impact on the broader digital asset market.

Donoghue pointed out that China’s latest move against the crypto industry does not necessarily mean that there will be a ban on holding positions in crypto assets.

He revealed in an interview with Investing.com that while there is a possibility that China’s approach could be very successful, the approach is a bit of a punch.

China is not as important as it used to be in terms of crypto adoption

Mr Seamus added that China will be less relevant due to Western adoption trends marked by banks and institutions that are increasingly and rapidly developing blockchain capabilities. According to Donoghue:

China’s will be less relevant as the trend for Western adoption – given all the banks and other institutions developing blockchain capabilities – is increasing dramatically and rapidly.

Amid concerns that there could be a potential exodus of crypto investors from China, he acknowledged that the impact of nations on crypto markets in terms of adoption is no longer as significant as it used to be.

Additionally, Donoghue said China’s stance on crypto will benefit the next rollout of its own digital currency.

China has tested and is in the process of launching its own digital currency, Donoghue said. This could be one of the reasons they are focusing on minimizing the potential penetration of virtual currencies.

The comment came after the People’s Bank of China (PBOC) posted a question-and-answer session on its website describing services that offer trading, order matching, token issuance and trading services. derivatives for cryptocurrencies as prohibited and declaring foreign crypto exchanges that offer services in the country as illegal.

Cryptocurrency prices fell as a result of the statement. Data from CoinMetrics shows the price of the benchmark cryptocurrency Bitcoin (BTC) fell 5% to $ 42,496.12 and Ethereum (ETH), the second largest digital coin by market cap, plunged 7%. % to $ 2,921.53.

According to Chainalysis data, China ranked fourth in the global adoption index in 2021 and the United States sixth, but this year China has dropped to 13th and the United States occupies now the eighth row.

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