Harried chief of BTC China Bobby Lee has commented that despite the People’s Bank of China’s various obstacles which do not encourage the use of the virtual currency in the marketplace, there is no law in China, which says crypto-currency of Bitcoins are illegal. He however, placed a request with the government to encourage bitcoin companies and not kill them.
The recent moves which have led to the closure of bitcoin companies were condemned by him. He noted that in recent times, the companies based on cryptocurrency have experienced shortened life-cycles. He pointed out that, on the mainland, these bitcoin companies were found to exist and close-shop within a short period of nine months.
He explained that the uncertainty associated with such companies will only lead to the disruption of the fledgling industry. In recent times, Beijing has been very successful in ensuring that there is no parallel transacting system outside of the official banking processes, there have been a couple of Chinese Bitcoin exchanges, which opened shop, only to shut down within 12 months.
The inconsistency of the industry and the continued downfall of exchanges has definitely affected the future of bitcoin and virtual exchanges. Though there are investors who are interested in starting or beginning new ventures which will help to entry the industry and offer wide-ranging services, the continued dismal performance of such exchanges has definitely dampened sentiments towards new ventures.
While many of the bitcoin businesses have gone bankrupt, it can only be said that the final stage of closing shop was adopted only after they have operated on losses. The need for control by the country’s central bank in regulating the virtual currency, though not isolated to China alone, does put to hardship such entrepreneurs who are interested in beginning a successful and legal- bound bitcoin ecosystem in the country.
June 30, 2014 at 06:41AM
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