The news from China indicates that the Chinese government is considering the option of resuming cryptocurrency trading by the end of 2017. Although this is welcome news to many investors who have always seen China as a driving force behind the bitcoin price, there is a string attached. The cryptocurrency trading will only resume by licensing all bitcoin exchanges. In addition, the regulators will put measures to ensure that Know Your Customer and Anti-Money Laundering systems are put in place. The purpose of regulating the cryptocurrency trading exchanges in China is as a result of increased criminal avidities with cryptocurrencies according to the Chinese government.
Many bitcoin news agencies suggest that the Chinese government has emphasized it will take necessary measures to fully regulate this market through the implementation of a licensing program as well as strict anti-money laundering systems. Although resumption of bitcoin exchanges in China is welcome news, many experts have pointed out that it will be the beginning for regulating the cryptocurrency industry. Currently, nobody is regulating bitcoin or any cryptocurrency. This is a decentralized cryptocurrency, and such an aspect has always made its price more attractive to investors and its value increase over the years.
When the Chinese government banned cryptocurrency exchanges in September 2017, the bitcoin price fell down to $3,000. This effect also saw the whole cryptocurrency market endure major corrections. The advantage, however, is that cryptocurrencies are widely accepted. After the ban, the huge trading volumes experienced in China went to other markets like South Korea and Japan. This restructured the cryptocurrency exchange market, and bitcoin was being traded at around $4,100 in September. This clearly shows that the ban did not stop people from buying bitcoins due to the wide acceptance in other non-regulated countries. But if the ban is lifted, experts are projecting that bitcoin will be traded at around $6,000 by the end of 2017.