China is an advanced country, more advanced than any other country when it comes to technology and blockchain standardization. They want the blockchain to be a part of their own economy. Even there is news that China is developing its own cryptocurrency and the Central Bank of China is heading towards becoming completely digital. In 2014, PBOC completed trial runs on the prototype of cryptocurrency and a research team was called to use that cryptocurrency as their own economy.
The recent breakdown over the ICOs by Chinese government and banning it completely makes you believe that China is soon going to implement cryptocurrency in their own economy.
For some time now, China is trying to make everything digital in terms of economy. They are trying to take off the fiat currency from their mainstream economy. The best example is that is in China people scan codes on their phone when they buy cold drinks. Therefore, you can see how fast China is moving ahead to implement digital economy in their country.
This means that China is moving towards becoming fully digital which means that they have to start utilizing blockchain technology. That means that at some part NEO will be included in the economy.
If China makes blockchain as a part of their economy, it is true that a regulation will come into play and many believes that if regulation comes into play then cryptocurrency market will get hurt. But the NEO says otherwise, they say that for cryptocurrency to thieve and evolve regulations has to be put in place.
Why the regulation on cryptocurrency?
The Chinese government is trying to bring cryptocurrency under regulation because these currencies are easily transacted in between criminals. It has become the best choice for the underground activities. Therefore, PBOC has banned transaction of cryptocurrency inside China and also ICOs has been banned in China.
But on the early October of 2017, officials from People’s Republic of China made it clear that they are not going to ban cryptocurrency for a long time. They are trying to draw a regulation on the cryptocurrency so that no illegal transactions take place and whenever that regulation will be on place, they will open up cryptocurrency in China once again.
Therefore companies like Kucoin exchange, Binance and other Chinese cryptocurrency exchanges can again start trading in Chinese market. Although, the impact of the ban on ICO in China doesn’t matter much for KuCoin as it does its trading with people outside of China.