China Daily (Latin America Weekly) - - Business -

share of yuan-de­nom­i­nated bit­coin trans­ac­tion vol­ume in the global to­tal last Septem­ber high­est trans­ac­tion vol­ume of yuan-de­nom­i­nated bit­coin ac­counted for 22.36 per­cent of the global to­tal, ac­cord­ing to Coin­hills, a provider of in­for­ma­tion on cryp­tocur­ren­cies. But, fol­low­ing the PBOC ban, the fig­ure plum­meted to less than 1 per­cent in the fi­nal two months of 2017, it said.

The tight­en­ing of reg­u­la­tion led to a sharp de­cline in vir­tual cur­ren­cies’ value, which may be con­ducive to the in­dus­try’s long-term de­vel­op­ment though, some in­vestors said.

“The top pri­or­ity in re­new­ing reg­u­la­tory mea­sures is to en­sure the se­cu­rity of the na­tional fi­nan­cial sys­tem,” said Zhong Xin­long, a con­sul­tant at Chi­nese re­search com­pany CCID Con­sult­ing. “It takes some time to re­search and de­velop an ef­fec­tive mech­a­nism to en­sure the safety of cryp­tocur­rency trad­ing, as well as to of­fer trad­ing frame­work and rel­e­vant fi­nan­cial ser­vices.”

Agreed Ja­son Jia, who has been dab­bling in cryp­tocur­ren­cies for more than eight years now. “The ef­fects of tighter reg­u­la­tion can be felt now. Quite a few Chi­nese traders have quit trad­ing.”

But not ev­ery­one is ner­vous or chas­tened. “With­out a doubt, earn­ings (from trad­ing in cryp­tocur­ren­cies) would grow sub­stan­tially in the fu­ture,” said Liang Tiancheng, a late­comer among dig­i­tal in­vestors. In less than three months, he in­vested 20,000 yuan, and re­turn on his in­vest­ment av­er­aged 5 per­cent.

Bit­coin’s rise, rather its roller-coaster ride, is ex­pected to con­tinue this year, ac­cord­ing to a re­cent re­port re­leased by Canac­cord Ge­nu­ity, a fi­nan­cial ser­vices firm.

On Mar 5, bit­coin’s price surged to $11,377 per unit, up about 58 per­cent from a month ear­lier, ac­cord­ing to Coin­base data. But car­goloader Zeng Wen, who os­cil­lated from one ex­treme of 2,800 yuan in monthly salary to the other ex­treme of 1.2 mil­lion yuan in no­tional wealth within two months, may not lose much sleep over it this time round.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.