Bitcoin and Crypto Adoption Spreading in China Despite Crackdown
Support of Bitcoin in China is heating up despite the government’s crypto crackdown in September 2017.
In addition to prohibiting commercial banks from servicing crypto-related businesses, local authorities enacted even more anti-crypto measures last month when they banned crypto companies from social media giant WeChat. Regulators also barred organizers of token sales and cryptocurrencies from promoting their offerings in public spaces, hotels and offices.
China also blocked 120 cryptocurrency exchanges that offer services to mainland residents.
Despite the efforts, China has been unable to curb crypto interest or stop adoption. Investors are still using over-the-counter trading platforms to buy ICO tokens as well as peer-to-peer crypto exchanges to make trades, buys and sells.
The first of its kind in China, “Ethereum Hotel” is accepting ETH as payment.
Some new photos of the "ETH Hotel", China's first hotel to accept $ETH payment. There's Bitcoin inside too!
— cnLedger (@cnLedger) September 28, 2018
Adoption is playing out as Ethereum’s classification is challenged. Shanghai Hongkou District People’s Court ruled on September 27 that Ethereum is property. The ruling involved a “defendant Chen” who was ordered to return 20 ETH.
According to the judgment,
“The plaintiff now asks the defendant to return 20 ETH. The reason is justified and the court should support it according to law.
Regarding the opinion that the defendant stated that the country banned the circulation of the Ethereum and returned the lack of legal basis, the Court considered that the current state did not recognize the monetary property of the so-called “virtual currency” such as the currency, and prohibited its financial activities such as circulation for use, but It is not denied that the Ethereum can be equally protected by law as a property in the general legal sense. Therefore, the above opinions of the defendant will not be accepted by law.
Meanwhile, Beijing Science and Technology Report (BSTR) will now accept payment in Bitcoin (BTC) for its 2019 subscription to Technology Life, making it the first Chinese publication that allows subscribers to pay in BTC.
According to a local news report by Guangming Net, BSTR, the oldest tech mag in China, aims to promote blockchain and the adoption of cryptocurrencies.
Subscribers will be able to pay 0.01 BTC, roughly 450 yuan, by sending Bitcoin directly to the newspaper’s wallet address. They’ll also receive some BTC if Bitcoin increases in price by the end of the subscription period, as the publication pledges to forward gains to its subscribers as compensation for risking payment with the volatile asset.
China's oldest tech media – Beijing Sci-Tech Report (BSTR) announces its "Tech Life" now accepts Bitcoin subscription (0.01BTC). BSTR explains that the main purpose of this move is to promote the blockchain technology through practical actions.
— cnLedger (@cnLedger) September 30, 2018
According to a report by South China Morning Post, industry insiders say that technically “it would be a huge challenge for the regulators to completely block access” and stop crypto activities “as long as a trading platform’s servers remain outside China, and transactions are conducted peer-to-peer and remain decentralised.”