It is only a matter of time before Beijing reverses its decision to ban all exchanges trading cryptocurrencies, according to Bobby Lee, a successful entrepreneur who was behind what was one the longest running bitcoin trading operation in China. “Nothing is ever permanent in this world,” said Lee, co-founder, and CEO of BTCC, which shut down its trading operations in China, following the ban in September of last year. While in an interview with CNBC’s Squawk Box, Lee said that he thinks it is possible that the Chinese government will lift the ban, and might license and reinstitute it. Still, the entrepreneur stopped short of giving a clear timeline: “Honestly speaking, I can’t tell what sort of timeline that is, whether it is a few years, a few decades or even a few months, so it is not easy to tell.”
The Chinese government banned all cryptocurrencies in September of last year, with authorities banning trading of bitcoin and initial coin offerings. The People’s Bank of China pointed out that the decision had been reached upon because such activities posed huge financial risks to the second largest economy in the world. Other Asian nations have since done the same, with S. Korea allegedly set to crackdown the use of secret accounts in cryptocurrency trading as soon as this month.
“The resilience of bitcoin is actually becoming evident, the more the regulators and governments try to put a squeeze on it,” Lee said, referring to the rapid price rise in bitcoin that followed the Chinese ban. Still, Beijing lashed out at the cryptocurrency just several days ago, with People’s Daily – a mouthpiece for the Communist Party – publishing an editorial saying that bitcoin is flooded with froth. Lee explains that he got out of the country’s bitcoin exchange business, and he now focuses ambitions on a global trading platform, a minting, and mining operation and a crypto currency wallet known as Mobi.
That current product he is focusing on is an international wallet that works with multiple cryptocurrencies. “We have an international play for wallets and we are no longer looking at just being a simple exchange business,” Lee said. The entrepreneur also said he believes the difficulty of mining new bitcoins and the scarcity of the cryptocurrency mean the price could run further in 2018. “Today we are at only 1,900 of newly mined coins daily,” he said. “Five years ago, that used to be 7,100. Therefore, in just a short time, maybe thirty more months, we will see the supply slip down again to only 800 bitcoins every day.” “So, you can imagine where the prices might be in three, six or ten years if we are talking about an inflow of multi-million dollars with a new supply of only 800 bitcoins a day.