A former top finance official in China, Zhu Guangyao, has called on the Chinese government to reassess its stringent ban on cryptocurrencies, just as the United States takes steps toward more crypto-friendly policies. During a forum in Beijing, Zhu highlighted the growing significance of digital assets in China’s broader digital economy, according to a report by the South China Morning Post.
Zhu acknowledged that while digital currencies carry risks such as volatility and potential misuse, those risks can be mitigated through proper regulatory frameworks rather than through an outright ban. His remarks come at a time when the U.S. is shifting its stance on cryptocurrencies, igniting discussions within China about the future of its policy.
Since 2017, China has maintained strict regulations on the crypto market, initially banning ICOs and shutting down crypto exchanges. In 2021, the country tightened its grip by outlawing Bitcoin mining and declaring all crypto-related activities illegal. However, Zhu argued that this approach has driven crypto trading into unregulated, underground markets.
Meanwhile, Hong Kong, a special administrative region of China, is carving out its own path. It recently approved cryptocurrency ETFs as part of its plan to become a global digital asset hub, a move that has tacit support from Beijing but runs counter to the mainland’s restrictive approach.
The shift in U.S. policy has prompted responses from prominent figures. Former U.S. President Donald Trump advocated for embracing digital assets to counter China’s dominance, while current Vice President Kamala Harris expressed her support for technological innovations, including cryptocurrencies.
Renowned Chinese economist Wang Yang has also spoken out against the mining ban, labeling it as a misstep that has allowed opportunities to migrate abroad, especially to the U.S. He warned that, should Trump return to office, China could find itself even more isolated financially.
Similarly, Huang Yiping, a former official at the People’s Bank of China, expressed concerns that the crypto ban may hinder China’s potential in leveraging blockchain and digital innovations.
With global attitudes toward digital assets shifting, China is at a crossroads. The country must now decide whether to ease restrictions and engage in the rapidly evolving digital economy or risk being left behind in the global cryptocurrency race.
Disclaimer:
FOMODigest strives to provide accurate and impartial reporting. The information in this article is for informational purposes only and should not be considered financial or legal advice. Due to the dynamic nature of the market, we encourage readers to conduct their own research and consult professionals before making any financial decisions.
