Joseph Chee, former head of investment banking at UBS Asia, stated that China will “eventually” lift its ban and reopen crypto access for its citizens. The banking veteran’s remarks come as the Chinese government continues to maintain its official ban on digital asset trading.
Chee predicts that regulatory easing by the country will trigger a new “supercycle” in the global crypto market. This view aligns with a central market narrative suggesting that a bull cycle far larger than historical precedents could occur if major financial institutions and leading nation-states begin investing simultaneously.
Underground Economy Tops $176 Billion
Despite government bans, the flow of Chinese capital into the crypto ecosystem has never truly ceased. Trading activity has shifted away from open channels, driving continuous growth in transaction volume across peer-to-peer (P2P) networks and offshore wallets.
Data from a report published on October 5, 2026, confirms that the crackdown failed to stifle the market. The report notes that China’s crypto economy has quietly surpassed $176 billion. Most notably, P2P wallet transaction volume skyrocketed 43-fold while state bans remained in effect. This flow of capital proves that genuine public demand quickly found alternative avenues once local exchanges were barred from operating.
Convergence of Two Capital Flows
Chee’s supercycle prediction relies on a convergence of liquidity as a catalyst. Shifting hundreds of billions of dollars from China’s underground market into legal channels would inject massive capital directly into global markets. If this retail inflow eventually merges with ongoing institutional adoption worldwide, the baseline conditions for driving a cycle-scale rally would be in place.
While a definitive timeline for lifting the ban has not been announced, the unchecked surge in P2P wallet transactions signals that policymakers may eventually have good reason to regulate capital that is already circulating beyond their radar.
Reported by @WatcherGuru on X.
Also read: How to Read Candlestick Charts for Beginners
Also read: Big Money Exits $215 Million from Ethereum ETFs in a Week - But Solana Whales Increase Bets
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
