China Urged To Reevaluate Crypto Ban By Former Finance Official Amid US Policy Changes
The post China Urged To Reevaluate Crypto Ban By Former Finance Official Amid US Policy Changes appeared on BitcoinEthereumNews.com.
Amid increasing discussions surrounding the crypto regulation landscape, a former senior official from China’s Ministry of Finance has urged the government to reconsider its stringent ban on virtual assets. According to a South China Morning Post report, Zhu Guangyao, vice minister from 2010 to 2018, highlighted the importance of cryptocurrencies to the Asian country’s digital economy at a recent economic forum in Beijing. Calls For Reconsideration Of Crypto Ban Zhu’s remarks come at a time when the United States has significantly altered its cryptocurrency policy, prompting experts in China to advocate for a similar reevaluation. The former minister highlighted that while cryptocurrencies pose certain risks—such as capital market volatility and potential misuse for illegal activities—they are also essential for advancing the digital economy. In 2017, the Chinese government banned initial coin offerings (ICOs) and ordered the closure of crypto exchanges. This crackdown intensified in 2021 when authorities prohibited Bitcoin (BTC) mining activities and declared crypto-related businesses illegal. The overarching rationale behind these measures concerns financial stability and the potential for cryptocurrencies to facilitate criminal activities, including money laundering and terrorist financing. However, Zhu pointed out that the concerns associated with cryptocurrencies could be effectively managed through regulation rather than outright bans. He noted, “Our current gap [with the US] is that we don’t participate,” suggesting that underground trading channels continue to operate without governmental oversight despite existing restrictions. Trump Urges Adoption, Harris Supports Innovation As China maintains its strict regulatory stance, Hong Kong has been moving in a different direction. The region is actively developing its cryptocurrency market to become a global hub for digital assets, operating under a separate legal framework that enjoys tacit approval from Beijing. This divergence between Hong Kong and Beijing is further showcased by the recent approval of the crypto exchange-traded funds (ETFs) market earlier…
Filed under: News - @ October 1, 2024 3:06 am