Former Chinese Finance Official Urges Reevaluation of Cryptocurrencies Amid U.S. Regulatory Shifts

A former high-ranking official from China is calling for a fresh look at cryptocurrencies. Zhu Guangyao, who used to be the vice minister of the Ministry of Finance, spoke at an economic forum in Beijing recently. He pointed out how the regulatory attitudes toward crypto are shifting in the United States.

Guangyao mentioned the U.S. Securities and Exchange Commission's recent approval of spot Bitcoin (BTC) exchange-traded funds (ETFs). He also highlighted that former President Donald Trump has included support for cryptocurrencies in his platform for the 2024 presidential campaign.

He acknowledged the risks, saying, “It does have negative effects, and we must fully recognize its risks and harm to the capital market. But we must study the latest international changes and policy adjustments because it is a crucial aspect of the development of the digital economy.”

Back in 2021, the Chinese government banned crypto mining and trading. Now, traders in China are increasingly using over-the-counter (OTC) and peer-to-peer (P2P) methods to trade, trying to avoid detection.

According to the crypto analytics firm Chainalysis, “If we look at a selection of China-based OTC platforms, we see tremendous growth, particularly since mid-2023. Many of these platforms have capitalized on the enduring interest in crypto among Chinese investors and found innovative ways to facilitate crypto trading, adapting to the regulatory environment.”