How China’s Crypto Ban is Helping the US Economy

Wang Yang, Vice President of the Hong Kong University of Science and Technology, comments on the implications of China's cryptocurrency policies.

He stressed that Hong Kong should not stop cryptocurrency companies that do not transact with local citizens, as these companies could support Hong Kong’s virtual asset ecosystem.

Yang criticized China’s ban on cryptocurrency mining, pointing out that this decision has allowed the U.S. a significant tax revenue opportunity estimated at $4 billion.

He suggested that instead of an outright ban, China should consider allowing state-owned enterprises to participate in mining or invest in mining operations to better control risk while protecting economic interests.

Yang also urged China to reconsider its stance on digital assets, suggesting that the acceptance of these assets should be aligned with theBelt and RoadInitiative and facilitate the tokenization of Real-World Assets (RWAs).

He acknowledged that cryptocurrencies are currently perceived as uncontrollable, but suggested that China’s strategic development may necessitate a policy shift. He also hinted that Donald Trump’s eventual return to power could force China to quickly revise its digital asset policies.

Alexander Stefanov