Posted 3 years ago | by Ben Armstrong
Apparently China is Still Anti-Crypto...Sort of...
The last few weeks have seen loads of China-based content in the crypto sphere, with Xi Jinping's recent pro-blockchain stance being amplified into a de-facto endorsement of tokens. Unfortunately, the big party might be premature, as Xi recently told the world that not only are cryptos still unloved by the Chinese government, he sees them as fraud.
The message underlying Xi's message should come as no surprise to anyone. China is a totalitarian police state, which is diametrically opposed to anything that has the potential to undermine its power. As such, cryptos are totally out of the question, even though China still has some of the largest crypto mining operations (nodes) in the world.
Yep...the China-Crypto situation is super complex, nuanced, and probably has more corruption than a New Jersey mafia racketeering trial.
Anyway, China decided to ban Binance and Tron from Chinese social media platform Weibo which won't mean much, as most Chinese crypto users are smart enough to use a VPN to do whatever the hell they want in the wild open spaces of the internet.
So...What's Up With China?
Xi's remarks come on the heels of a massive push by Chinese state media on the topics of cryptos and blockchain, all of which was done in a very positive light.
It seems like the Chinese President-for-life thought the global media sphere was overheating (as he isn't subject to the same laws as his nation's chattel) and he decided to muddy the media waters with vaguely foreboding nonsense.
One thing that Xi did make clear is that China really doesn't like decentralized assets, probably because they can't control them in a way that they find comfortable. Russia has the solution to this problem, but China probably won't like the path to reach the goal.
Russia's FSB May Have $450 million USD in BTC...Maybe
According to a story that originates with the BBC, the FSB, which was preceded by the KGB, might be behind the disappearance of a whole lot of BTC.
So the story goes, WEX, a crypto exchange that is now out of business, was infiltrated by FSB agents, or at the very least, compromised by them. The net result is that the FSB got its hands on the passcodes that controlled the entirety of the tokens on deposit with WEX, which may be worth over $400 million USD.
It is easy to see that cryptos are creating a major buzz at the highest levels of government, and there isn't a decisive position to be found.
As time goes on, governments may have to concede that they have little, if any, control over an asset class that was designed to circumvent every single gate-keeping mechanism in the existing financial system.