Kraken CEO commented on Bloomberg TV regarding the ban on cryptocurrency transactions in China. According to Jesse Powell, the United States can benefit from this event by becoming a major player in the crypto market.
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On September 24, the People’s Bank of China banned all cryptocurrency transactions. This is not the first tightening of regulation for digital currencies in the country, but surely the most significant one. Bitcoin price fell by 8% after the news from China.
Jesse Powell pointed out that after every previous ban or restriction of cryptocurrencies in China, Bitcoin has been recovering in price in just 3 months. Moreover, the recovery was accompanied by subsequent growth to local highs.
Kraken CEO also stated that the China is not a target market for the crypto exchange, which operates in 190 jurisdictions. At the same time, according to Powell, the United States can benefit from the ban of cryptocurrencies in China, becoming the world’s main crypto market.
“We are the beginning of crypto market formation, as we were once at the origins of the formation of the Internet. It will be great if the US takes the lead in this area“, Powell said.
At the same time a lot will depend on the actions of the American government. Powell urged US regulators to improve legislation on cryptocurrencies and “stop applying 85-year-old standards to bitcoin“.