China takes a step towards cryptocurrency acceptance, but we need a leap...

Just a few days ago, Chinese courts cleared up a few 'grey areas' - and ruled that Bitcoin ownership is legal, merchants can choose to accept it as a form of payment, and it should be treated legally as property of the owner.

Which is a step in the right direction.

But after reading comments from people in some of the cryptocurrency communities i'm a member of, things along the lines of "this is huge" and other comments expecting this to lead to market movement, I think some clarification is needed.

Still in place is the full ban on participating in cryptocurrency exchanges and ICOs.

So another way to look at this is - currently in China people can possess and spend the Bitcoin they acquired on exchanges before the ban, or through mining, with all the legal protections of someone spending money.

But mined Bitcoin, and Bitcoin purchased long ago simply changing hands within China won't have any effect on the markets as a whole.

This still leaves us with at least a reasonable hope that Bitcoin spending activity officially being legal ignites more demand to be allowed back into the global cryptocurrency markets.  A task much easier if Chinese businesses can present a case for increased profitability through use of cryptocurrencies.

Author: Adam Lee 
Asia News Desk