China Could Be Preparing to Lift Its Bitcoin Ban

It’s only a matter of time before China rethinks its Bitcoin ban. Despite outlawing trading and mining in 2021, the landscape has dramatically shifted — particularly this year. Bitcoin’s global momentum has been extraordinary.

Key developments have included the US President-Elect Donald Trump advocating Bitcoin reserves, the approval of Bitcoin ETFs, Fed Chair Jerome Powell labeling Bitcoin as “digital gold,” Larry Fink showing optimism toward Bitcoin, and even Vladimir Putin praising it publicly. In light of these global trends, it won’t be surprising if China is already covertly accumulating Bitcoin.

Here’s why: China tends to operate discreetly. Former Binance CEO CZ highlighted this at the Bitcoin MENA conference in Abu Dhabi, explaining that unlike the US — which favors grand public declarations regarding policies (e.g., Trump courting voters with Bitcoin announcements) — Asian countries prefer a more private approach.

Additionally, China doesn’t have elections to sway public opinion like Trump does. Any potential Bitcoin moves will be done quietly, only revealed once strategically advantageous.

With Trump’s strong Bitcoin push and crypto advocacy, China likely won’t remain inactive for long. The Bitcoin narrative is evolving into a global competition, and China has incentive to remain relevant. My intuition suggests they are laying the groundwork to reverse the ban — possibly as soon as Q1 next year, particularly if Trump assumes office.

A major indicator? Hong Kong. Historically, China has utilized Hong Kong to pilot initiatives before rolling them out nationwide. This year, Hong Kong has made significant progress — approving Bitcoin and crypto ETFs, greenlighting crypto exchanges, and hinting at removing institutional crypto taxes. These steps are undoubtedly calculated. China is almost certainly monitoring these developments closely, preparing for broader adoption.

In my view, China may have been quietly accumulating Bitcoin behind the scenes all along. When the timing aligns, they won’t just reverse the ban to keep pace with the US