Zhu Guangyao, China’s former minister of finance, emphasized the need for the government to closely examine cryptocurrency during a forum hosted by Tsinghua University. His comments come in response to remarks made on the U.S. campaign trail, highlighting the importance of understanding the evolving landscape of digital currencies.
According to a report by Sina News, Zhu acknowledged the potential negative impacts of crypto, stating, “We must fully recognize its risks and the harm it poses to capital markets.” However, he also urged for a comprehensive study of international changes and policy adjustments, describing this as essential for the development of the digital economy.
Zhu specifically referenced comments made by Republican presidential candidate Donald Trump, who argued at the Bitcoin Conference in Nashville in July that the U.S. must fully embrace the crypto industry to prevent China from taking the lead. Trump likened cryptocurrency to the steel industry of a century ago, noting, “You’re just in your infancy. One day, it probably will overtake gold. There’s never been anything like it.”
Additionally, Zhu pointed out that despite initial resistance, the U.S. Securities and Exchange Commission (SEC) has approved exchange-traded funds (ETFs) for Bitcoin (BTC) and Ether (ETH), signaling a shift in regulatory attitudes towards digital assets.
While the Chinese mainland remains cautious regarding cryptocurrency, Hong Kong has adopted a more open stance, allowing the listing of Bitcoin and Ether ETFs. Some members of Hong Kong’s mini-legislature are actively encouraging the crypto industry to establish a presence in the city, highlighting the contrasting approaches to digital asset regulation within China.
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