While many media outlets and financial experts have pointed to the large influx of funds from China to Western bitcoin exchanges as the cause of the recent bitcoin price spike, China’s Internet watchdog has announced that it can no longer “ignore its revolutionary changes” announcing that we have entered the “post-Bitcoin era.”
Now it appears that China’ law enforcement and government agencies’ approach toward the cryptocurrency demonstrate may be easing. Based on recent events and publications from the Cyberspace Administration of China, the government seems to have tacitly authorized the use of bitcoin and operations of bitcoin startups and exchanges.
In a newly released publication, the CAC noted that the United States Commodity Futures Trading Commission (CFTC) officially defined bitcoin as a commodity and that its bank regulators stated that bitcoin will promote economic regulation of electronic money.
A section of the publication also added:
“Although some people think that bitcoin and its underlying technology, the blockchain, is not stable, we cannot ignore the revolutionary changes it brought to the financial sector. The new technology has led to the expansion of a distributed payment and settlement mechanism, which will innovate financial transactions.”