China’s former vice finance minister calls for deeper study of crypto amid global policy shifts

Quick Take

  • Zhu Guangyao, China’s former vice minister of finance, said at a forum in Beijing that crypto is a “crucial aspect” of the development of the digital economy.
  • Zhu made these remarks despite China’s ongoing ban on crypto trading and mining on the mainland.

Zhu Guangyao, China’s former vice minister of finance, called for further study of cryptocurrency developments and relevant international policy shifts.

Zhu said during a roundtable discussion at a finance and economic forum in Beijing on Saturday that cryptocurrencies indeed have negative impacts and “we must fully recognize their risks and the harm they pose to capital markets.”

“However, we must also study the latest international developments and policy adjustments, particularly the influence of U.S. bipartisan policies, as this is a crucial aspect for the development of the entire digital economy,” Zhu added.

Zhu made the remarks at the Tsinghua PBCSF Chief Economists Forum, a widely watched event that gathered prominent economists, researchers and former Chinese government officials.

In September 2021, the People’s Bank of China, the Supreme People’s Court and several other central authorities issued a notice banning all crypto trading activities on the mainland. The ban clarified that services provided by overseas crypto exchanges to Chinese residents on the mainland are considered illegal financial activities. Many investors, however, still found ways to circumvent the rules and trade crypto.

Zhu said that the U.S. appears to be making notable shifts in how it intends to treat crypto, with the Republican party voicing support for crypto as part of its presidential campaign.

According to Zhu, the listing of spot crypto exchange-traded funds in the U.S. earlier this year reflects a fundamental shift in crypto policymaking.


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AUTHOR

Timmy Shen is an Asia editor for The Block. Previously, he wrote about crypto and Web3 for Forkast.News from Taiwan after spending more than three years in Beijing covering finance, entertainment business and current affairs at Caixin Global and Chinese tech at TechNode. His China-related reporting has also appeared in The Guardian. When he's not chasing headlines, you'll find him savoring hot pot and shabu shabu in a Taipei local haunt. Timmy holds an MS degree from Columbia University Graduate School of Journalism. Send tips to [email protected] or get in touch on X/Telegram @timmyhmshen.

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