China Could Reassess Crypto Ban Due To Trump, HashKey CEO Claims

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As a seasoned analyst with a decade of experience navigating the ever-evolving landscape of global finance and technology, I find Xiao Feng’s insights both insightful and plausible. Having witnessed firsthand China’s strategic maneuvers and its relentless pursuit of financial autonomy, it is not far-fetched to imagine that geopolitical pressures could indeed expedite the country’s acceptance of digital assets. The exclusion of Russia from SWIFT serves as a potent reminder of the need for alternative financial infrastructures, and China might well seize this opportunity to safeguard its own economic interests.

According to HashKey Group’s Chairman and CEO, Xiao Feng, China may become less strict in its approach towards cryptocurrencies within the next two years. This potential shift is thought to be influenced by the pro-cryptocurrency policies anticipated under the presidency of Donald Trump in the United States. Xiao suggests that clear regulatory backing in America could prompt China to reconsider its current prohibition on digital currencies.

Why China Could Reconsider Its Crypto Ban

According to Xiao’s statements in an interview, if the U.S. Congress and the incoming president set definite policies regarding cryptocurrencies and support the industry, it is likely that this would significantly influence China to embrace digital currencies as well.

Xiao further highlighted geopolitical influences that could potentially speed up China’s embrace of digital assets. The expulsion of Russia from SWIFT by the U.S. and its allies in 2022 serves as a reminder of the significance of alternative financial systems. This action, taken as part of sanctions concerning the Ukraine conflict, might lead China to seriously consider cryptocurrencies to protect its financial independence.

According to Xiao, if these particular events hadn’t occurred, it could take China around five to six years to embrace cryptocurrency businesses. However, given the current situation, this timeline might be reduced to just two years.

For several years now, China has imposed tight restrictions on initial coin offerings (ICOs), cryptocurrency trading, mining, and similar activities. The authorities have expressed concerns about financial stability and the possibility of illegal activities as key reasons behind this clampdown. Interestingly, Hong Kong has been given leeway to cultivate its digital asset sector, potentially serving as a link if mainland China decides to ease its regulatory stance.

If China were to resume participation in the digital asset sector, Xiao proposes that a primary emphasis could be placed on regulated stablecoins. He pointed out that at present, stablecoins offer the most effective option for cross-border business-to-consumer transactions.

As a researcher, I’ve recently found myself supporting the growing perspective that digital currencies are becoming increasingly relevant, especially in international trade. In my latest study, I focused on Yiwu, a bustling manufacturing and trading center in mainland China. The survey I conducted among local merchants revealed an intriguing trend: almost all of them had received inquiries from foreign buyers about making payments using well-known US dollar-backed stablecoins like USDT and USDC. This suggests that these digital assets are gaining traction as a preferred payment method, particularly in international transactions.

HashKey Group manages one of Hong Kong’s three authorized cryptocurrency exchanges, known as HashKey Exchange. In the coming month, they are set to debut their own blockchain platform, called HashKey Chain. With more than 300 staff members in Hong Kong and additional teams based in Singapore, Tokyo, Dubai, Bermuda, and Europe, HashKey is broadening its global presence.

Though the Chinese administration hasn’t hinted at imminent changes to its cryptocurrency restrictions, Xiao underscored the significance of maintaining a robust presence in Hong Kong. He stated, “Being present in Hong Kong allows us to cater to mainland China once it reopens to the market. We are confident that such an opening will happen.

At press time, Bitcoin traded at $91,083.

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2024-11-15 03:41