According to experts, the Chinese government banned cryptocurrency amid raised concerns on possible money withdrawals to less “stable” Western banks.
Founder of EMCD Mikhael Jerlis is one of those who support this point of view. Notably, the issue affects both large investors as well as ordinary citizens. According to Jerlis, China cracked down on cryptocurrencies because the country is not ready for the financial system to restructure. One of the main reasons for such measures became authorities’ fears of a possible transfer of the assets to foreign banks, Jerlis added.
Investors raised worries about their assets' safety because they do not trust the Chinese economy, which depends on the government’s sentiment. Jerlis said that cryptocurrency legalization could deprive the governments of the ability to solve economic problems with a monetary printing press or raise the interest rate.
The US policy on cryptocurrencies looks much better amid imposed restrictions in China. The US government decided not to ban cryptocurrencies, but on the contrary, it is engaged in its legalization along with other assets. Mikhael Jerlis highlighted that the US share of the global mining market increased. Crypto owners, entrepreneurs, and investors are attracted to regions where the legal framework is transparent, thoughtful, and easily predictable, where disputes are resolved in courts, not behind closed doors. He also added that cryptocurrency owners need confidence in the future, and not constantly fear the bans.
