A recent development in China has sparked interest in the country’s stance on cryptocurrencies. Zhu Guangyao, the former vice minister of the Ministry of Finance, has spoken out in favor of exploring the potential of cryptocurrencies in China. This comes as regulatory attitudes towards crypto are evolving globally, with a particular focus on recent developments in the United States.
At an economic forum in Beijing, Guangyao highlighted the decision by the U.S. Securities and Exchange Commission (SEC) to approve spot Bitcoin (BTC) exchange-traded funds (ETFs), as well as former President Donald Trump’s inclusion of support for crypto in his 2024 presidential campaign platform. This shift in attitude towards cryptocurrencies in the U.S. has caught the attention of Chinese officials like Guangyao.
While acknowledging the risks and potential harm that cryptocurrencies can pose to the capital market, Guangyao emphasized the importance of studying international changes and policy adjustments in order to understand the role of cryptocurrencies in the digital economy.
It is worth noting that China implemented a ban on crypto mining and trading in 2021. Despite this ban, Chinese traders have resorted to over-the-counter (OTC) and peer-to-peer (P2P) methods of trading to circumvent detection. According to crypto analytics firm Chainalysis, China-based OTC platforms have experienced significant growth since mid-2023, catering to the continued interest in cryptocurrencies among Chinese investors.
As discussions around cryptocurrency regulation continue, Guangyao’s remarks signal a potential shift in China’s approach to cryptocurrencies. While the ban on crypto activities remains in place, the growing interest and innovation in crypto trading platforms within China suggest a willingness to adapt to the changing landscape of the digital economy.
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