Trump’s Crypto Support Could Revitalize China’s Market

US President-elect Donald Trump’s commitment to the cryptocurrency industry may encourage China to rejuvenate its digital-asset market. This perspective comes from HashKey Group’s chairman, Xiao Feng, amidst rising tech competition between the US and China.

Potential Changes in China’s Crypto Policy

Xiao Feng suggested that clear crypto policies from the US Congress and the incoming president would motivate China to embrace cryptocurrencies. He emphasized that consistent legislation and promotion of the crypto sector in the US could significantly influence China's stance.

Historical Context and Recent Events

The 2022 actions by the US and its allies to exclude Russia from the Swift financial system may also play a role in persuading China to reconsider its strict regulations on cryptocurrencies. Xiao noted that the timeline for China to accept cryptocurrency businesses could be reduced from five or six years to just two years due to these geopolitical factors.

China’s Current Stance on Cryptocurrencies

For several years, Beijing has enforced a stringent ban on initial coin offerings, crypto trading, and mining, viewing these activities as risks to financial stability and potential avenues for criminal behavior.

Renewed Enthusiasm in the Crypto Sector

Xiao’s remarks highlight a growing optimism in the cryptocurrency landscape following Trump’s electoral victory. Trump has pledged to position the US as a leader in the digital-asset industry, proposing initiatives like a national bitcoin stockpile and reducing regulatory barriers perceived as hostile to crypto.