- Media reports about China reversing its crypto trading ban were based on a misunderstanding
- Bitcoin attempts a recovery above $6,300 handle.
Media reports about China lifting the ban on cryptocurrency trading turned out to be fake news to the bitter disappointment of Chinese crypto lovers. This time the truth was lost in translation… or at least, poor translators were the most obvious scapegoats in this story.
What happened:
Several media outlets focused on cryptocurrency publications spread the news that China lifts bitcoin ban. Some public figures also joined the game with tweets and statements about Beijing backtracking on its restrictive policy. However, they this was just a misinterpretation of a Shenzen court ruling.
On October 25, the Shenzhen Court of International Arbitration (SCIA) declared Bitcoin as a property in accordance with the existing legislation of China. It means that Chinese citizens and merchants can transfer and own digital assets on legal grounds, which was never forbidden in China in the first place.
“Although Bitcoin may not be legal currency, that does not prevent it from being protected by law as a property,” said SCIA in the released case analysis. “The Party contends that Bitcoin has characteristics of a property (SOV) that can be controlled by the owner; it has economic value and can bring economic benefits to the owner. This does not break any laws. This arbitrator agrees,” the decision said
In other words, China just confirmed its position on cryptocurrencies. Moreover, no court has powers to lift the ban. It can be done only by the government.
The news had little effect on the cryptocurrency market as Bitcoin continued moving within a narrow range with bearish bias until $6,300 was broken. The digital coin No. 1 touched $6,251 low, where a new buying interest appeared. Now BTC/USD is attempting to get back above $6,300, which is needed to improve the short-term technical picture.
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