Bobby Lee, one of China’s earliest crypto moguls, said that the country’s crackdown on digital currencies is likely to intensify. It may even go to the extent of bans on holding tokens. Bobby Lee, who is the founder and CEO of Ballet, a cryptocurrency wallet, had to sell BTC China, the country’s first Bitcoin exchange, after the 2017 crackdown. Considering that the exchange was the second biggest in the world, it was a major blow to Chinese crypto investors.
This year, China initiated an anti-cryptocurrency campaign. The government is taking action against crypto miners and curbing crypto trading and banking services. The move caused Bitcoin’s value to drop to almost half of $65,000, which was the record it set in mid-April.
In an interview, Bobby Lee predicted that the next possible step of the Chinese government’s plan would be to band cryptocurrency altogether. He said that the odds of it happening are about 50-50. After spending some time in the US and publishing his book, the Promise of Bitcoin, Bobby Lee returned to China to focus on his latest venture, Ballet Global Inc., a company that produces a hardware wallet to collect cryptocurrency.
Nevertheless, he’s still a Bitcoin bull, estimating that the popular digital currency could end this year at around $250,000, and perhaps reach $1 million in the next few years.
He assumes that the Chinese government cracked down on crypto because they want to achieve financial stability. In that case, Chinese people trading and investing in an unregulated and volatile financial product is detrimental to the goal. He disproved the theory that China’s crackdown has anything to do with the energy concerns pertaining to mining crypto because the government made no effort to draw a distinction between the mining facilities powered by renewable energy versus those powered by coal.
Bobby Lee clarified that the government still isn’t done implementing measures to crack down on Bitcoin, explaining that there are a few more things they can do. After all, they still know that many companies and exchanges are operating in China. It’s possible that the government is planning to give them the boot.
He reiterated that while China could potentially ban owning crypto, the rumors that ‘Bitcoin is banned in China’ are just that. Rumors. Even now, it’s legal to own Bitcoin, so one can technically buy it and sell it to their friends, or even strangers. But they can’t do so through specific businesses or platforms because the government has shut them down. In essence, China is making it more difficult to trade crypto but hasn’t outlawed it. He’s predicting that the band might come once Bitcoin prices rise to $1 million, or even half of that.