China’s former Finance minister calls crypto “crucial”

Zhu Guangyao, China’s former finance minister, has urged Beijing to focus more closely on the cryptocurrency market during a speech at a Tsinghua University summit. He emphasized the potential risks and threats that crypto could pose to capital markets, calling for greater awareness and regulation.

• Zhu warned that crypto has “negative impacts” and urged the government to fully recognize its risks.
• He pointed to the changing international landscape, including remarks by U.S. candidates like Donald Trump, who advocated for a stronger embrace of crypto.
• Zhu also referenced the approval of Bitcoin and Ether ETFs by the U.S. Securities and Exchange Commission (SEC) as a sign of growing acceptance globally.

While China remains cautious about cryptocurrencies, Hong Kong has taken a more open stance, listing Bitcoin and Ether ETFs and welcoming the industry as part of its semi-autonomous market structure. This contrast highlights different approaches to crypto regulation within China’s borders.