The post China Urged to Assess Bitcoin ETF Impact Amid US Policy Shift, Lou Jiwei Warns appeared on BitcoinEthereumNews.com.

China must carefully scrutinize cryptocurrency advancements, especially following the US policy shift on Bitcoin ETFs. The potential financial instability and risks associated with cryptocurrencies were emphasized by former Chinese finance minister Lou Jiwei. Lou noted the implications of the US SEC’s approval of Bitcoin exchange-traded funds and urged Chinese policymakers to study these changes closely. China urged to reassess cryptocurrency advancements amid significant US policy shifts, emphasizing the need for vigilant risk management. China Needs to Reevaluate Cryptocurrency in Light of US Bitcoin ETF Approvals Former Chinese finance minister Lou Jiwei recently highlighted the urgency for China to reassess its stance on cryptocurrency developments. Speaking at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing, Lou pointed out the critical nature of monitoring advancements in the digital currency space, particularly as global policies, like the US’s decision to approve Bitcoin ETFs, shift. This move by the US Securities and Exchange Commission (SEC) signals a significant change in the regulatory landscape. Implications for Global Financial Stability Lou Jiwei stressed the potential risks that cryptocurrencies impose on global financial stability, especially in terms of volatility and their use in illicit activities like money laundering. The ex-minister emphasized that the inherent volatility of digital currencies can lead to financial instability, impacting broader economic security. He suggested that these risks warrant a thorough examination to protect financial systems from potential disruptions. US Crypto Policy Shift The former finance minister underscored the major pivot by the United States regarding Bitcoin and its associated financial products. Historically, the US SEC had been resistant to approving Bitcoin ETFs. However, their recent approval signifies a recognized legitimacy and acceptance of cryptocurrencies within conventional financial markets. Lou urged Chinese policymakers to observe and analyze these international policy adjustments meticulously. Developments in China’s Crypto Hashrate Dominance Despite China’s stringent prohibition…

---

Filed under: News - @ September 29, 2024 7:27 am