Hashkey CEO Believes Trump’s Pro-Crypto Moves Could Restart China Interest in Digital Assets

Hashkey Group CEO Xiao Fieng believes that Donald Trump’s pro-crypto stance could reignite China interest in digital assets. In a recent interview with the South China Morning Post, Xiao shared his insights on how the renewed enthusiasm in the United States for Cryptocurrency under Trump’s administration could create a ripple effect, even influencing China’s strict stance on digital assets.

China Current Ban on Cryptocurrencies

Beijing currently maintains a strict ban on cryptocurrency-related activities, which include Initial Coin Offerings (ICOs), trading, and mining.

The Chinese government perceives these activities as potential risks to financial stability and believes they could promote illegal activities.

However, Xiao suggested that changes in U.S. cryptocurrency policies, along with geopolitical competition in technology, might prompt Chinese policymakers to reconsider their position sooner than expected.

Xiao emphasized that Trump’s campaign promises, including a “strategic national bitcoin stockpile” and reduced crypto regulations, indicate a favorable environment for the sector in the U.S. The supportive climate could prompt China to consider a more open approach to cryptocurrencies to remain competitive.

A Need for Financial Flexibility

Xiao believes that if the U.S. implements these policies, China might rethink its ban on crypto businesses within two years, rather than the previously estimated five to six years.

Additionally, Xiao noted the impactful decision in 2022 to remove Russia from the SWIFT financial messaging system. He suggested this action likely heightened China’s awareness of the need for flexibility in financial networks, a quality that cryptocurrencies can provide.

As China recognizes the benefits of crypto technology, it may start adopting policies that allow for a controlled reintegration of digital assets into its economy.

While no immediate changes to China’s crypto regulations are currently on the horizon, Xiao’s recent remark has sparked a renewed sense of optimism within the industry. He believes that Trump’s impending leadership could potentially trigger a significant shift in China’s approach to cryptocurrencies.

Consequently, it would be fostering a more favorable environment for innovation and investment. The potential alignment between two major economies could prove important, particularly in the increasingly crypto-driven world.