Zhu Guangyao urged the government to reconsider its strict crypto ban, especially as the US adopts more favourable policies towards digital assets.
Speaking at a forum in Beijing, Zhu highlighted the importance of cryptocurrencies to China’s digital economy, noting that the risks associated with them – such as volatility and illegal use – can be managed through regulations rather than an outright ban.
China initially cracked down on cryptocurrencies in 2017, banning initial coin offerings (ICOs) and shutting down exchanges. By 2021, restrictions were further tightened by banning Bitcoin mining and outlawing crypto-related activities.
However, Zhu argues that these measures have driven crypto trading underground, creating an unregulated space.
Meanwhile, Hong Kong is taking a different approach, seeking to become a global hub for digital assets with Beijing’s tacit support, having recently approved crypto exchange-traded funds (ETFs).
China now faces a critical decision: whether to maintain its restrictive stance or accept the growing global importance of cryptocurrencies.
Bitcoin started October with a negative trend, disappointing investors who expected a continuation of the upward trend it enjoyed towards the end of September.
A cryptocurrency analyst recently revealed a notable obstacle on the path of Bitcoin’s revival, that could negatively impact the token’s price trajectory.
On Tuesday, U.S. spot Bitcoin ETFs saw a notable outflow of $242.53 million, marking the largest single-day withdrawal since early September. This movement halted an eight-day streak of positive inflows.
A recent Datascope analysis shared via CryptoQuant showed that extreme swings in the ratio of long/short volume to open interest often signal major market reversals.