During the course of last week, the news was circulating that the Chinese government had lifted the blanket ban it has on Bitcoin and cryptocurrencies.
One story which gained attention and traction in the industry was entitled “China Lifts Bitcoin Ban; Individuals and Businesses Can Now Own Cryptocurrencies Legally.” However, the news was based on an outdated piece of information – from 25th October – and painted a picture which was inaccurate. The new was falsely connecting the court ruling of the Shenzhen Court of International Arbitration to the ban. As CNLedger described:
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
While the markets are struggling, any ‘good news’ comes as great news and will attract investors and cryptocurrency traders. However, it stimulates distrust in the industry when the news is fake and hype is unwarranted.
As it stands at present, the Chinese government is not allowing cryptocurrency payments and trading within the country. Initial coin offering projects (ICOs) are also considered illegal and there seems to be no intention to change the law regarding them.
As reported previously, the Chinese government has, in fact, been cracking down on cryptocurrency rather than allowing it. In August, the government set out to shut down all blockchain related events in the Chaoyang district of Beijing.