- Former Finance Minister urges China to rethink crypto policy.
- China's allowance of Hong Kong ETF investments signals cautious steps toward crypto.
At a 2024 economic forum in Beijing, former Finance Minister Zhu Guangyao urged China to rethink its crypto approach amid accelerating US policies.
He acknowledged the risks but stressed the importance of staying updated on global shifts, stating, “We must fully recognise its risks and the harm it poses to capital markets, but we must study the latest international changes and policy adjustments because it is a crucial aspect of digital economy development.”
The comments were reported in SINA Finance.
Zhu noted that the US has made significant policy changes this year, including the approval of 11 Bitcoin ETFs.
He even quoted former President Donald Trump, who has been advocating for embracing crypto to prevent China from taking the lead in the sector.
Trump’s opponent, Kamala Harris, has also recently adopted a stance on clear-cut and progressive crypto regulations.
This call for a policy shift echoes comments from Tron founder Justin Sun, who urged China to reconsider its stance on crypto following Trump’s endorsement of Bitcoin.
Sun tweeted in July, “China also needs to step up... US policies have warmed. China should make further progress.”
While China maintains a cautious stance, it has taken small steps towards becoming more open to crypto.
Chinese investors can still purchase crypto through Hong Kong-based firms, and in April, three Bitcoin ETFs were launched in Hong Kong.
