Get All Access for $5/mo

Elementus CEO Says 'Jury Is Still Out' on Chinese Crypto Ban China's recent ban on trading and mining cryptocurrency remains a hot topic in the financial world.

By Emily Rella

Opinions expressed by Entrepreneur contributors are their own.

China's recent ban on trading and mining cryptocurrency remains a hot topic in the financial world, but Elementus CEO and co-founder Max Galka says it is too early to tell how it will impact China-based investors and their ability to invest in cryptocurrency.

"I think the jury is still out on that question," he told Entrepreneur. "It has become an ongoing thing that China periodically announces. This may be the sixth or seventh time. And so far, it has not managed to stop anybody from really doing much of anything and people continue on operating as they normally did. I think it is very hard for a government to enforce something like this. It certainly is not going to stop people from trading crypto. They've gotten very used to finding ways around bans."

He added that "a large part of what people think of as being the China ecosystem in crypto is actually located off-shore."

Related: China declared all cryptocurrency transactions illegal and causes Bitcoin crash

Elementus, an institutional-grade crypto forensic solution, is the first universal blockchain search engine. Its enterprise blockchain platform provides real-time intelligence from blockchain data and distributed ledgers. The goal is to identify security vulnerabilities and expedite critical decision-making.

"I think mining is probably the biggest sector that could be impacted, though it's too early to determine what exactly the effect is going to be," Galka said. "But China is the clearly dominant country when it comes to Bitcoin mining and the largest miners in the world come from China. So if Bitcoin mining is truly now illegal, I think that is a game changer for at least that ecosystem and that it is really going to impact the entire mining industry."

As for whether the ban is designed to further the adoption of the digital yuan, Galka said "it's reasonable to think that they wouldn't want other digital currencies that serve as alternatives."

Still, he noted, "China has been putting in place bans like this for many years, since long before they were talking about creating a digital yuan, so I'm more inclined to take the explanation at face value. Each time they do a ban, it is to protect consumers and at least that's the stated reason. And this is no exception. So I kind of feel like I take them at their word for for why the ban is taking place."

Emily Rella

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Growing a Business

Sell Your Company When You Least Expect It — How to Properly Scale and Sell Your Business

Many small business owners struggle with expanding without sacrificing quality. Whether you're running a service-based or product-based company, following a few essential steps is key to scaling your business effectively while maintaining consistency.

Management

How to Develop Empowered Leaders Within Your Own Team

The true power of leadership lies in the potential within our teams and creating environments that allow them to demonstrate leadership themselves. When we forget this, we end up with disengaged workforces, stifled creativity, and missed opportunities for growth.

Starting a Business

Dyslexia Couldn't Stop This 23-Year-Old From Creating a $1 Million Language Learning App. Here's His Best Advice for Pursuing Your Passion.

Michael Peled, co-founder and CEO of Singit, explains the driving force behind his immersive education platform that teaches English through music.

Side Hustle

Retirees Are Raking in Billions With These 4 Side Hustles: 'There's No Age Limit to Innovation'

Most Americans plan to work part-time in retirement — and the opportunities are endless.

Business News

Amazon Asks Employees to Use Its New, Internal Chatbot That's 'Safer Than ChatGPT'

Amazon has reportedly introduced an internal chatbot named Cedric.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.