Regulation will only become stricter!

It can only be said that, at present, relaxing regulation is almost impossible. The reasons are as follows:
1. Considerations of financial security and capital control
China has strict controls over capital flows and financial stability. The decentralized and cross-border characteristics of cryptocurrencies may make them a channel for capital outflow, disrupting the country's control over capital. Therefore, to maintain the stability of capital flows, the Chinese government adopts a cautious attitude towards cryptocurrencies.
2. Advancement of monetary sovereignty and digital renminbi
China is vigorously promoting central bank digital currency (DCEP), namely digital renminbi. Digital renminbi is managed by the central bank and aligns with the national goal of maintaining control over monetary sovereignty, whereas decentralized cryptocurrencies like Bitcoin are not controlled by any country and are seen as potential competitors to sovereign currencies. Therefore, China may continue to suppress Bitcoin and other cryptocurrencies to ensure the smooth promotion and application of digital renminbi.