Speaking at the Tsinghua Wudaokou 2024 Chief Economists Forum in Beijing, former Chinese Finance Minister Lu Jiwei urged China to carefully assess the progress and risks associated with cryptocurrencies.
Lu has reportedly highlighted the potential threats that digital currencies pose to financial stability, such as volatility and their use for money laundering. He also noted the changing stance of the United States towards cryptocurrencies, especially after the U.S. Securities and Exchange Commission approved Bitcoin exchange-traded funds (ETFs).
Lou highlighted the risks that cryptocurrencies could bring to global financial stability, including concerns related to anti-money laundering (AML) and terrorist financing. He called for a thorough examination of these risks to protect financial systems from potential disruption.
Lu also pointed to the significant shift in US policy on cryptocurrencies, urging Chinese policymakers to study these global changes. He stressed that it is important to understand both the risks and innovations in the digital economy as cryptocurrencies are increasingly accepted in global markets.
Despite China’s 2021 ban on mining and trading Bitcoin, the country still controls over 55% of the BTC mining network, although this dominance is gradually shifting to US mining firms.
Mark Cuban, the billionaire entrepreneur, expressed concerns about SEC Chairman Gary Gensler’s regulatory approach, claiming it could have prevented the collapses of FTX and Three Arrows Capital (3AC).
Coinbase is set to remove all stablecoins that fail to meet regulatory standards in the European Economic Area (EEA) by the end of the year as part of its compliance with tightening EU regulations.
The International Monetary Fund (IMF) has once again turned its attention to El Salvador, urging the nation to enhance its regulatory framework regarding Bitcoin.
Turkish investors are closely monitoring the topic of cryptocurrency taxation, but Treasury and Finance Minister Mehmet Şimşek has made it clear that taxes on stocks and cryptocurrencies are not currently under consideration.