Crypto community divided over China's blockchain law

The cryptocurrency law that has been passed by China's congress has left the crypto community divided.

China passes blockchain law after president endorses technology.

The law was passed just a day after China's President Xi Jinping called for increasing support for blockchain development in the country.

Xi's calls for China to "Seize the opportunity" and "Take a leading position" in blockchain were seen by some as a direct jab at the U.S., whose lack of new regulation and increased scrutiny towards projects such as Libra stifled blockchain and crypto development.

Few developments in crypto managed to create a schism as deep as China's blockchain law did.

While one half of the crypto community praised the country for its proactive stance on the emerging technology, the other believes having so much government oversight in blockchain is more dangerous than it looks.

Crypto community wages war over the consequences of China's blockchain law.

Zhao also seemed to see the new blockchain law as something that would give China a huge head start in its race with the U.S. In a follow-up tweet, Zhao echoed the thoughts many supporters of China's blockchain law seemed to have.

Crypto analyst Rhythm Trader echoed McCormack's statement, saying that celebrating government control of blockchain goes against the very core of cryptocurrencies.

While the human rights abuses and censorship going on in China shouldn't be overlooked, the country's adoption of blockchain has brought much-needed attention to the space.