China isn’t at “war” with crypto. They’re trying to make it work for them.

Anti-Chinese memes are fun and all, but I wanted to give you guys a clearer picture about what's happening in China right now.

China has a history of trying to legislate around free-market economies in a way that doesn't impede the market but still works for them. When Hong Kong was ceded back to China in 1999, China made Hong Kong a separate economic zone, thus allaying fears that China would kill one of the world's most important market economies.

This is exactly what's happening in China right now. the PRC is trying to make Bitcoin work within the Chinese economy. They are NOT trying to kill a thriving economic market.

Exhibit A: China isn't shutting down exchanges, they're forcing them to get licensed. That means all exchanges will have to conform to stricter guidelines about accounting and tracking, which might not please the crypto-anarchists but does mean a lesser likelihood of a Chinese Mt Gox event. What we're seeing right now is a transition from non-regulated to regulated.

Exhibit B: Rumor has it the PBoC wants to introduce a "digital yuan" that will serve as a CNY tether. This means the PBoC can control the entry and exit of CNY on the Chinese exchanges. This is critical to making crypto work for China, since taking CNY out of China is illegal.

In other words, once the dust settles on China, the Chinese Government will know how its own currency flows through the market, and it will know it's doing this through regulated exchanges that Chinese criminals cannot use to launder money.

This is a far cry from China simply trying to outlaw Bitcoin. This is China, realizing the potential of cryptocurrency, deciding to see if they can make it work on their own market.

tl;dr: Ignore the China FUD. China is actively trying to make crypto work for them, not destroy it.

submitted by /u/Triseult
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