Lao Mao, the former chief of operations for the Chinese cryptocurrency exchange Yunbi, has posted a statement outlining his outlook for bitcoin’s future both in China and globally moving forward from China’s crackdown.
Lao Mao States That China’s Recent Regulatory Maelstrom Will “Only Leave a Small Mark” on the Cryptocurrency Markets
The former COO for Yunbi expressed his belief that the blockchain and cryptocurrencies industries will continue to exhibit growth in spite of a reduced Chinese market presence. Lao Mao states that blockchain and cryptocurrency “world will continue to move forward” despite “China’s regulatory storm.”
Lao Mao expects that China’s regulators will maintain the crackdown on cryptocurrency exchanges for at least six months, stating that such will allow for regulators to make policy assessments. Lao Mao states that “regulatory authorities themselves also need a time window to observe the reactions. Therefore it’s impossible to see any public trading platform that offers CNY trade pairs within the next six months.”
Lao Mao states that the reduced influence that Chinese political and regulatory forces now exert over the bitcoin markets is positive news for the cryptocurrency ecosystem overall. Lao Mao describes his reaction to the crackdown as being a sigh of relief, stating “[in] that moment, I realized, from then, the price of bitcoin will no longer be affected by Chinese factors, whether it is China’s speculators of regulatory uncertainty, will no longer exist. For bitcoin, this may be a good thing.”
Lao Mao Believes That OTC Trading Will Become the Primary Means Through Which Bitcoins Are Circulated in China
Lao Mao anticipates that the price of bitcoin will continue to go up due to growing international demand, and advocates that Chinese citizens in possession of bitcoin continue to hold on to their tokens. Of the altcoin markets, Lao Mao warns that investors may be more prone to capital flight, as “hot money” will likely quickly move in and out of particular altcoin markets in search of short-term profits.
Lao Mao lamentingly expresses his expectation that Chinese ICO ban will deter innovation in the blockchain and cryptocurrency industries, forecasting that “many small blockchain startups will die due to lack of funding.” Lao Mao describes the ICOs as having provided “the only [opportunity] ordinary people ha[d]… to participate in the high-tech field”, stating that the crackdown has seen regulators “finally close the door to the public.”
Ultimately, Lao Mao concludes that “the global blockchain industry… will not be affected” by China’s crackdown long term. The former COO points to the newfound dominance of the Japanese bitcoin market, stating that “Japan has become the friendly” jurisdiction to cryptocurrency innovation worldwide. Lao Mao also points to the legislative frameworks being developed by South Korea, Australia, Britain, Germany, Holland, and Nordic nations as evidence of an international shift toward inclusive economic policies regarding bitcoin and cryptocurrency on part of many national governments.
Do you agree with Lao Mao’s outlook for the bitcoin markets in China and internationally? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Yunbi
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