Former Chinese finance official urges crypto research as US softens stance
Former finance vice-minister Zhu Guangyao called cryptocurrencies a ‘crucial aspect for the development of the entire digital economy’
Cryptocurrencies are “crucial” for the digital economy and China should catch up as the US embraces the industry, according to a former senior Ministry of Finance official, as more experts openly urge the central government to re-evaluate its ban on the virtual assets.
Crypto policy in the US has “changed significantly” this year, and China should study its impact and other global policy developments for the sector, Zhu Guangyao, China’s former finance vice-minister, said on Saturday during a panel discussion at an economic forum in Beijing.
While cryptocurrencies have risks and could harm the capital market, it is also a “crucial aspect for the development of the entire digital economy”, he added.
Zhu, who was second in command at the finance ministry from 2010 to 2018, is among a growing number of Chinese economists calling for Beijing to review its crypto ban on the mainland amid a global expansion in recent years.
Beijing first banned initial coin offerings and ordered the closure of crypto exchanges in 2017. It intensified its crackdown in 2021, when it banned bitcoin mining and declared crypto-related business to be illegal. Chinese authorities consider cryptoassets to be a threat to financial stability and a breeding ground for criminal activity.
Zhu said the risks from cryptocurrencies – which include impacts on countering terrorist financing and anti-money-laundering efforts, as well as capital market volatility – can be addressed through regulation.
