China Urged To Rethink Crypto Policy As US Leads Bitcoin ETFs

Key points:

• Former Finance Minister urges China to rethink crypto policy.
• China’s allowance of Hong Kong ETF investments signals cautious steps toward crypto.

Former Finance Minister Zhu said that China urged to rethink crypto policy amid US Bitcoin ETF advances, stressing the importance of staying updated on global shifts.

China Urged To Rethink Crypto Policy Amid US Bitcoin ETF Progress

The former Finance Minister, Zhu Guangyao, urged China to rethink its crypto policy during an economic forum in 2024. He called on Beijing to move in time with the times, referring to this year’s endorsement by the US of 11 Bitcoin ETFs. He warned, “If China falls behind, its roles in the evolving digital economy will be compromised”.

Zhu’s call reflects a broader concern that the US is gaining ground in crypto policy. He pointed to an expanding roster of leaders who support embracing crypto, from Donald Trump to current presidential candidate Robert F. Kennedy Jr., and China’s cautious steps, such as Hong Kong’s ETF initiatives, as potential openings for broader adoption.

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Hong Kong ETFs and US Policies Push China to Rethink Crypto

Meanwhile, China has allowed crypto investments by Hong Kong-based firms, signaling cautious progress in its crypto stance. Zhu Guangyao added that China needs to study policy shifts in other nations-especially as the US accelerates crypto developments like Bitcoin ETFs. This is the slow and sure type of change that would reveal China’s cognizance of the global impact.

As TRON founder Justin Sun said, “the gradual Chinese way contrasts with the swiftly changing US”, now that US policymakers and regulators are warming up towards crypto, leaving China to increasingly feel the heat to pick up its pace and revisit policies for competitiveness.