A top crypto exec believes China’s strict crypto ban might be lifted sooner than expected, possibly within two years. This prediction hinges on a few key factors.
US Policy Influence
HashKey Group’s CEO, Xiao Feng, suggests that clear, pro-crypto policies from the US government could push China to reconsider its stance. He believes that strong US regulatory support would significantly influence China’s decision.
Geopolitical Shifts
The global situation is also playing a role. The US and its allies cutting Russia off from SWIFT highlighted the need for alternative financial systems. This might encourage China to explore cryptocurrencies to maintain its financial independence. Xiao believes these geopolitical events could speed up China’s acceptance of crypto by several years.
China’s Current Stance and Hong Kong’s Role
China has maintained a strict ban on crypto trading, mining, and ICOs for years, citing concerns about financial stability and illegal activities. However, Hong Kong has been allowed to develop its own crypto industry, potentially acting as a gateway if mainland China changes its regulations.
Stablecoins: A Potential Entry Point
Xiao believes that stablecoins could be the first cryptocurrencies adopted in China, particularly for international trade. A HashKey survey in Yiwu, a major Chinese trading hub, showed that many merchants are already receiving requests for payments in stablecoins like USDT and USDC.
HashKey’s Strategy
HashKey, a major player in Hong Kong’s crypto scene, is preparing for this potential shift. They’re launching their own blockchain and expanding globally, maintaining a strong presence in Hong Kong to be ready when the mainland market opens up. They believe it’s just a matter of time.
(Note: Bitcoin’s price at the time of writing was $91,083.)/p>
