Throughout the past 24 hours, several publications and public figures have misreported that China has put an end to its blanket ban on bitcoin and the cryptocurrency exchange market.
On Nov. 9, one cryptocurrency-focused publication released a story entitled “China Lifts Bitcoin Ban; Individuals and Businesses Can Now Own Cryptocurrencies Legally.” The article instantly attracted many investors in the cryptocurrency market, who demonstrated optimism towards the supposed unbanning of Bitcoin.
However, the article itself was based on a court ruling of the Shenzhen Court of International Arbitration which was released on Oct. 25. The outdated and misrepresented story falsely led many investors in the market to manufacture hype around the asset class, in a period in which the cryptocurrency market is stagnant and struggling to initiate major upward price movements.
Overhyped News is Alluring But Not Beneficial to the Industry
In October, as CnLedger, a trusted news source in China reported, the Chinese court confirmed that Bitcoin is protected by law as property. As such, individuals, businesses, and merchants can technically utilize cryptocurrencies like Bitcoin and Ethereum as a payment method without conflicting with local regulations.
1/ Chinese court confirms Bitcoin protected by law. Shenzhen Court of International Arbitration ruled a case involving cryptos. Inside the verdict: CN law does not forbid owning & transferring bitcoin, which should be protected by law bc its property nature and economic value.
— cnLedger (@cnLedger) October 26, 2018
In the previous month, CryptoSlate reported that the cryptocurrency market of China has become more active as of late, due to the acceptance of digital assets by hotels and publications. In late September, Ethereum Hotel, China’s first hotel that accepts Ethereum (ETH) as a payment method, reportedly opened their business in National Scenic Area of Four Girls Mountain (Sichuan Province).
On Oct. 1, China’s oldest technology publication Beijing Sci-Tech Report (BSTR) announced that it would accept Bitcoin as a payment method for its subscriptions beginning early 2019, to encourage the utilization of crypto in a “real-world setting for practical actions,” – The Ethereum Hotel and BSTR have been able to integrate cryptocurrencies into their payment systems because the two digital assets are recognized as properties under local laws.