Yesterday there was one more news that seemed too good to be true. And again, it was an overhyped story based on half-baked information that was served by few rumor mongering publishers to serve their own interests. It was heard that our neighbor ‘China has lifted its ban from Bitcoin’. As you can imagine, we couldn’t wrap our heads around this news and decided to wait before publishing anything on this front. We dug a bit deeper, and it turned out that we were right – it was indeed fake news!
What happened was that a court in the Chinese city of Shenzhen delivered a ruling in some cryptocurrency-related case. In the verdict, court said that Chinese law doesn’t forbid owning and transferring Bitcoin, and therefore it should also protect Bitcoin because of its economic value and property nature.
Now, these lines were intentionally or unintentionally twisted by the media to project the picture that ban on Bitcoin has been lifted in China. However, the reality is that owning and transferring Bitcoin was never banned by China in the first place. The ban was over BTC trading, and operating of cryptocurrency exchanges that facilitate BTC trade. That ban still continues to be in place. In short, there’s no change of positions. This was also confirmed by Forbes columnist and investor Joseph Young in one of his tweets a few hours back:
China HAS NOT lifted its ban on Bitcoin.
Local court recognized Bitcoin as a property for quite some time already. People can send and receive BTC but it cannot be traded and exchanges are still not allowed to facilitate BTC trades.
Old news overhyped.https://t.co/jZE9B8bDBa
— Joseph Young (@iamjosephyoung) November 9, 2018
It’s also worth noting that if ban on Bitcoin in China has to be lifted, it can be done only by the government. Courts don’t have that much power in China (i.e. to allow something that is banned by the government).
Cryptocurrency news is overhyped more often than other news, probably because of poorer understanding. It happens everywhere – India, China, United States, Britain – all countries and their media are on the same page when it comes to misreporting of crypto news. So before you take any trading decision based on news, I would suggest that you think twice and check the source of the news. Also, you can check whether we’ve covered the news or not! If we’ve covered it, then in most cases it will be genuine! 🙂