China is an emerging player in crypto space. Actions and regulations in that country will soon influence market sentiment. With its pro blockchain stance and (until recently) anti crypto mood, China has often sent out confusing signals. We should be seeing much more clarity in the Chinese policy towards cryptos in 2020.
To begin with the Chinese will eventually have a clear cut policy, related to crypto exchanges operating from their country. The registration of such exchanges, transactions, identity of traders and surely the entity behind the exchange will all be made accessible to the government. Yes anonymity is the basic underlying theme for crypto but then, the Chinese have never been known to follow conventions when it comes to privacy.
Exchanges will need to adapt to the Chinese ideology or stay out. Traders will no doubt need to be informed in advance that, transactions conducted on those exchanges will have information collected and shared with the Chinese authorities.
Another eagerly awaited move in 2020, would be the launch of the official Chinese crypto. Very interesting possibilities here. Too simplified if we presume that, it would have little significance outside the country. China is an important supplier of goods, services, raw materials and even packaging material to a huge number of countries. Let us for a moment visualize these countries fulfilling their payment obligations (either fully or partially), with the Chinese crypto. The dollar value of the crypto would be gigantic and exceed that of Bitcoin by miles.
Let’s see what is in store for cryptos in China, 2020 is undoubtedly the year of super action for the massive nation.