Amid growing debates surrounding the cryptocurrency regulation scene, a former senior official from China’s Ministry of Finance has urged the government to reconsider its strict ban on virtual assets.
According to the South China Morning newspaper a reportZhou Guangyao, vice minister from 2010 to 2018, highlighted the importance of cryptocurrencies for the Asian nation’s digital economy at a recent economic forum in Beijing.
Calls for a reconsideration of the cryptocurrency ban
Zhu’s comments come at a time when the United States has dramatically changed its cryptocurrency policy, prompting experts in China to call for a similar reassessment.
The former minister stressed that although cryptocurrencies pose certain risks – such as capital market volatility and potential misuse for illegal activities – they are also essential to boost the digital economy.
In 2017, the Chinese government banned initial coin offerings (ICOs) and ordered the closure of cryptocurrency exchanges. This campaign intensified in 2021 when authorities banned Bitcoin (BTC). Mining activities It declared that businesses related to cryptocurrencies are illegal.
The overarching rationale behind these measures relates to financial stability and the potential for cryptocurrencies to facilitate criminal activities, including money laundering and terrorist financing.
However, Zhou noted that the concerns associated with cryptocurrencies can be effectively managed through this Systems Instead of a complete ban. “Our current gap (with the United States) is that we are not participating,” he noted, suggesting that underground trade channels continue to operate without government oversight despite existing restrictions.
Trump urges adoption, Harris supports innovation
China also maintains strictness Organizational positionHong Kong was moving in a different direction. The region is actively developing the cryptocurrency market into a global hub for digital assets, operating within a separate legal framework that has tacit approval from Beijing.
This difference between Hong Kong and Beijing is demonstrated by the recent approval of cryptocurrencies Exchange-traded funds (ETFs) earlier this year, which invested directly in the two largest cryptocurrencies on the market Bitcoin and Ethereum (ETH).
The changing dynamics of the global market have not gone unnoticed by political figures in the United States, most notably the Republican candidate and former president. Donald TrumpWho has it? He stressed The need for the United States to embrace digital assets to avoid allowing China to dominate space.
Likewise, after months of silence on the virtual asset industry, Democratic presidential candidate Kamala Harris did Express Support innovative technologies, including digital assets, to regulate this sector for its growth.
Wang Yang, a prominent academic, also criticized China’s ban on cryptocurrency mining, calling it “highly unwise” because it inadvertently shifted business opportunities to the United States.
Yang warned that if former President Trump regains his seat in the Oval Office, China could face increased “financial isolation” and would likely be removed from the SWIFT financial messaging system.
Echoing these sentiments, economist Huang Yiping, a former member of the Monetary Policy Committee of the People’s Bank of China, questioned the long-term sustainability of cryptocurrency bans, suggesting that it could hinder China’s ability to capitalize on these sentiments. Blockchain technology And other innovations.
Ultimately, it remains to be seen whether the government will implement a new regulatory framework to be at the forefront of digital asset adoption or will maintain its current stance, knowing that the emerging sector is becoming increasingly important to the global economy.
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