Former China Finance Official Calls on Crypto Study
By Vukan Ljubojevic | TH3FUS3 Senior Writer
September 30, 2024 12:13 PM
Reading time: 1 minute, 34 seconds
TL;DR Zhu Guangyao, China's former vice minister of finance, emphasized the importance of studying international cryptocurrency developments despite China's ongoing ban. He highlighted the influence of U.S. policies during a roundtable at the Tsinghua PBCSF Chief Economists Forum.
Zhu Guangyao, China's former vice minister of finance, has made a surprising call for further study of cryptocurrency developments and relevant international policy shifts.
This comes at a time when China maintains a stringent ban on crypto trading and mining on the mainland.
Insight at the Forum
Zhu made his remarks during a roundtable discussion at a finance and economic forum held in Beijing on Saturday.
The event, known as the Tsinghua PBCSF Chief Economists Forum, is widely watched and gathers prominent economists, researchers, and former Chinese government officials.
Zhu acknowledged the negative impacts of cryptocurrencies, stating, "We must fully recognize their risks and the harm they pose to capital markets."
However, he also stressed the need to study the latest international developments and policy adjustments, particularly the influence of U.S. bipartisan policies. He remarked, "This is crucial for developing the entire digital economy."
China's Strict Ban
In September 2021, China's People's Bank, the Supreme People's Court, and several other central authorities issued a notice banning all crypto trading activities on the mainland.
This ban clarified that services provided by overseas crypto exchanges to Chinese residents are considered illegal financial activities. Despite this, many investors have tried circumventing the rules and continue trading crypto.
U.S. Policy Shifts
Zhu pointed out that the U.S. appears to be making notable shifts in its approach to crypto. The Republican party has voiced support for crypto as part of its presidential campaign.
According to Zhu, listing spot crypto exchange-traded funds in the U.S. earlier this year reflects a fundamental shift in crypto policymaking.
"The U.S. appears to be making notable shifts in how it intends to treat crypto," Zhu said, highlighting the growing importance of international policies in shaping China's digital economy strategy.
His remarks underscore global crypto regulations' complexity and evolving nature, even as China maintains its strict stance.
