Justin Sun won the lawsuit, and the encryption community is increasingly looking forward to China opening up the encryption market

Rumors of China potentially lifting its cryptocurrency ban by Q4 2024 have spread, gaining traction on social media platforms like X (formerly Twitter).

Notable figures, including Mike Novogratz, CEO of Galaxy Digital, have shown interest in these rumors. Novogratz tweeted, "If this is true, and it’s the second time I’ve heard it in weeks, it’s a huge deal. Anyone have insight?"

Justin Sun’s Legal Victory

Justin Sun, founder of the TRON Network, won a defamation case in the People’s Court of China against the Chongqing Business Media Group in June.

This victory is seen by some as a potential indicator of a shifting regulatory environment in China towards cryptocurrencies.

Bybit open accounts in china

Crypto exchange Bybit announced in June that it would allow Chinese expatriates to open accounts and trade.

This move is interpreted by some as a signal of easing crypto regulations, as Bybit streamlined the signup and verification process for users in China.

Hong Kong's Crypto ETF Approvals

Hong Kong approved spot Bitcoin and Ethereum exchange-traded funds (ETFs) in April, available in multiple currencies including the US dollar, Hong Kong dollar, and renminbi.

Although mainland Chinese investors are still prohibited from investing in these ETFs, the move is seen as a positive development for the region's crypto market.

China’s huge underground crypto market

Despite the ban, Chinese citizens have continued to access cryptocurrencies through underground networks and direct public transactions.

A Chainalysis report from July 2022 to June 2023 showed $86.4 million worth of cryptocurrencies were received in China, with transaction volumes on centralized and decentralized exchanges accounting for 73.5% and 20.5% of global averages, respectively.

Potential Impact of china Lifting the Ban

If China lifts its crypto ban, it could significantly impact the global cryptocurrency market.

The underground market activity suggests a strong demand for cryptocurrencies in China, which could translate into a substantial increase in market volumes and prices if the ban is lifted.