October 01, 2024
By Our Correspondent
The recent approval of Hong Kong ETF indicates a measured approach towards cryptocurrency.
During a 2024 economic forum in Beijing, former Finance Minister Zhu Guangyao called on China to reconsider its stance on cryptocurrencies in light of the rapidly evolving policies in the United States. Zhu acknowledged the inherent risks associated with cryptocurrencies but emphasized the necessity of remaining informed about global developments.
He stated, “We must fully recognize 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.”
He pointed out that the United States has enacted significant policy reforms this year, including the approval of 11 Bitcoin ETFs. Zhu referenced former President Donald Trump, who has been vocal about the need to embrace cryptocurrencies to prevent China from gaining a competitive edge in this sector.
Additionally, Trump’s political rival, Kamala Harris, has recently taken a position advocating for clear and progressive regulations regarding cryptocurrencies. China’s $284 billion stimulus package is contributing to a rise in Bitcoin prices, raising questions about the timing of further substantial economic measures.
This appeal for a policy reevaluation aligns with sentiments expressed by Tron founder Justin Sun, who urged China to rethink its cryptocurrency policies following Trump’s support for Bitcoin. Sun tweeted in July, “China also needs to step up… US policies have warmed. China should make further progress.”
While China continues to adopt a cautious approach, it has made incremental moves towards a more open stance on cryptocurrencies. Chinese investors are still able to engage in cryptocurrency transactions through firms based in Hong Kong, and in April, three Bitcoin ETFs were launched in the Chinese-controlled city.
