China holds $3.9B worth of Bitcoin despite anti-crypto stance (2024)

FAQs

What is China's stance on Bitcoin? ›

Crypto trading and mining has been banned in China since 2021. Run used bank cards issued by small rural commercial banks to buy cryptocurrencies through grey-market dealers, and capped each transaction at 50,000 yuan ($6,978) to escape scrutiny. "Bitcoin is a safe haven, like gold," says Run.

China has reason to be wary of crypto. It doesn't want people to use it to evade its capital controls, for example. At the same time, China has long embraced the potential of blockchain technology, and Beijing even issued a Web3 white paper. The country has ambitious plans for its central bank digital currency.

“It is unlikely the rumors China is opening for crypto are true, as this would be against Xi's agenda on how the Chinese state is built,” Ohtamaa told Cointelegraph. He added: “China's concern with crypto has always been the capital flight.

Despite its use for buying goods and services, there are still no uniform international laws that regulate Bitcoin. Many developed countries allow Bitcoin to be used, such as the U.S., Canada, and the U.K. In several countries, including China and Saudi Arabia, it is illegal to use Bitcoin.

Most of this collection is through law enforcement seizures since 2020. US bitcoin assets have been on the rise as the country enforces asset confiscation from individuals. China's Bitcoin holding amounts to 190,000 BTC.

So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.

Among them, 9 countries and regions have implemented absolute bans, which completely prohibit the production, holding, trading and use of cryptocurrency. These countries and regions are: Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar and Tunisia.

Bitcoin Cannot Be Regulated

Fiat currency is backed by the full faith and credit of a government. This means that governments promise to make a currency borrower whole in case of a default.

Instead, Bitcoin's price is determined based on supply and demand. Bitcoin has a supply cap where no more than 21 million BTC will ever exist. Bitcoin's price increases when demand exceeds supply and decreases when demand falls.

Can Chinese use Coinbase? ›

Although not available in China, Coinbase is a global crypto exchange in more than 100 nations. Buyers can purchase Bitcoin in exchange for fiat currency such as USD and EUR.

Russian President Vladimir Putin on Thursday signed a law legalizing the mining of cryptocurrencies in the country. The document, available on the government website, comes into effect 10 days after the date of its publication.

What Is China's Cryptocurrency Called? Digital currencies backed by a government are called central bank digital currencies, so they differ from cryptocurrencies. While it's reportedly still being developed, China's CBDC is rumored to be called the digital yuan, e-yuan, or e-rmb.

Is cryptocurrency legal in Japan? Yes, cryptocurrencies are legal in Japan. The Payment Services Act defines “crypto-assets” as payment methods that are not denominated in fiat currency and can be used to pay unspecified persons. There are no restrictions on owning and investing in cryptocurrencies.

The digital RMB is legal tender and has equivalent value with other forms of renminbi, also known as the Chinese yuan (CNY), such as bills and coins.

China's cryptocurrency investors made gains of about US$1 billion in 2023 despite sweeping government ban. Hong Kong cryptocurrency investors realised gains of US$250 million last year, according to Chainalysis. In 2021, they made US$1.3 billion.