A former high-ranking Chinese government official is reportedly pushing his country to explore cryptocurrencies.
Chinese media outlet Sina reports that Zhu Guangyao, the former vice minister of the Ministry of Finance, spoke at an economic forum in Beijing this weekend and drew attention to the evolving regulations on crypto in the United States.
Guangyao reportedly mentioned the US Securities and Exchange Commission’s (SEC) decision to approve spot Bitcoin (BTC) exchange-traded funds (ETFs), as well as former President Donald Trump’s choice to include cryptocurrency support in his 2024 presidential campaign platform.
The former deputy minister said:
“It has negative effects, and we must fully recognize the risks and damage to the capital market, but we must study the latest international changes and policy adjustments because it is a crucial aspect for the development of the digital economy.”
The Chinese government has banned crypto mining and trading in 2021. Crypto analytics firm Chainalysis notes that traders in the country have started using over-the-counter (OTC) or peer-to-peer (P2P) trading methods to avoid detection.
“When we look at a selection of China-based OTC platforms, we see tremendous growth, especially since mid-2023. Many of these platforms have benefited from the continued interest in crypto among Chinese investors and have found innovative ways to facilitate crypto trading , and some have adapted to the regulations.”
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