In a recent forum in Beijing, former senior finance official Zhu Guangyao urged China to reconsider its stringent ban on cryptocurrencies, highlighting their potential role in bolstering the nation’s digital economy. His remarks come at a time when the U.S. is adopting a more crypto-friendly approach, igniting discussions within China about the implications of its current policies.
Since its initial crackdown on crypto in 2017, which included banning initial coin offerings and closing exchanges, China has only tightened its grip, culminating in a complete ban on crypto-related activities in 2021.
Zhu argues that such prohibitions have merely driven trading underground, leaving it unregulated and potentially more dangerous. He advocates for a regulatory framework that could mitigate risks associated with digital currencies, rather than an outright ban.
Meanwhile, Hong Kong is charting a different course, aiming to establish itself as a global hub for digital assets with Beijing’s tacit support. The region’s approval of crypto exchange-traded funds earlier this year underscores this divergence in approach.
The shifting landscape has caught the attention of U.S. political figures, with former President Trump advocating for the embrace of digital assets to counter China’s influence, while Vice President Kamala Harris has expressed support for innovative technologies, including cryptocurrencies.
Critics within China, such as economist Wang Yang, have labeled the mining ban as “unwise,” warning that it has pushed opportunities abroad, particularly to the U.S.
