## Is the Sleeping Dragon Waking? China Hints at a Crypto Comeback

Remember when China slammed the brakes on crypto in 2021? Well, the whispers are getting louder: the sleeping dragon might be stirring. Recent developments suggest China’s stance on digital assets is softening, hinting at a potential crypto comeback.

**Hong Kong: The Canary in the Coal Mine**

Under the “one country, two systems” framework, Hong Kong is blossoming into a crypto-friendly oasis. New regulations are rolling out, designed to lure crypto businesses and investors. This could be a strategic test run for the mainland, a way for China to dip its toes back into the crypto waters without a full commitment.

**Blockchain: China’s Tech Power Play**

While cracking down on crypto trading, China has been quietly doubling down on blockchain technology. State-backed initiatives like the Blockchain-based Service Network (BSN) are weaving blockchain into various sectors. This suggests China recognizes blockchain’s strategic importance for maintaining its global tech dominance – a potential stepping stone to re-embracing crypto.

**Shanghai Court Ruling: A Seismic Shift?**

In a landmark decision that sent shockwaves through the crypto world, a Shanghai court declared owning cryptocurrency is **not** illegal under Chinese law. This monumental verdict, delivered by Judge Sun Jie, provides the first legal clarity in years, offering crypto holders a much-needed sigh of relief. While businesses still face tight restrictions, this ruling could pave the way for greater individual participation in the crypto market.

**Bitcoin vs. GDP: A Telling Tale**

Francis Pouliot of BullBitcoin.com recently highlighted a fascinating trend: Bitcoin’s value is rapidly approaching the GDP of major economies. He predicts that by the peak of this cycle, only China and the USA will boast economies larger than Bitcoin. This underscores the growing global significance of crypto and puts China’s potential re-entry into the market in a whole new light.

**The Bottom Line:**

China’s complete return to the crypto fold isn’t guaranteed, but the signs are increasingly compelling. From Hong Kong’s crypto-friendly policies to ongoing blockchain investments and the groundbreaking Shanghai court ruling, the momentum is building. While mainlanders might still need a VPN for trading (and can’t use yuan on platforms like Bybit), the winds of change are blowing. Could China be poised to reclaim its position as a crypto superpower? Only time will tell.

**Disclaimer:** Crypto investments are inherently risky. This article is for informational purposes only and should not be considered financial advice. Always do your own research before investing.

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