- Once a crypto leader, China abandoned its position in 2021 by banning mining and trading.
- A Hong Kong professor called China‘s crypto ban a mistake and suggested Trump’s win could prompt a rethink.
- Trump’s election campaign has heavily targeted crypto voters.
China’s 2021 ban on cryptocurrency mining and trading reshaped the global crypto landscape. Despite ongoing rumors of a potential policy reversal, especially in light of Hong Kong’s embrace of digital assets such as approved crypto ETF products and an exchange framework, mainland China has remained steadfast in its position.
However, Wang Yang, Vice President of the Hong Kong University of Science and Technology, claimed that China may be compelled to reconsider its hardline stance on cryptocurrencies if former President Donald Trump secures victory in the upcoming U.S. election.
Crypto Ban a Mistake
China’s 2021 crackdown on cryptocurrencies triggered a seismic shift in the global digital asset landscape. It prompted a mass exodus of miners and exchanges from the country, creating a significant void in what was once a thriving crypto ecosystem.
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Speaking at the Hashkey New Horizons event on June 26, Wang Yang offered a critical perspective on China’s hardline approach. According to Wu Blockchain, Wang argued that the mining ban was “unwise,” explaining that it redirected an estimated $4 billion in tax revenue to the U.S.
Wang suggested that “It is better to let state-owned enterprises mine or state-owned enterprises buy shares to ensure risk control,” rather than imposing an outright ban. The professor added that China may need to reassess its crypto ban if Donald Trump returns to power in the upcoming U.S. election.
Trump Positions Himself as ‘Crypto President’
Recent weeks have seen Trump increasingly vocal about his support for a thriving U.S. crypto industry, coinciding with the intensifying U.S. presidential race.
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Trump’s latest bid to woo the crypto community saw the former president pursue an opportunity to deliver a keynote speech at the upcoming Bitcoin Conference 2024 in Nashville, Tennessee, scheduled for July 25-27.
Earlier this month, Trump took to Truth Social to declare his desire for all remaining Bitcoin to be mined in the United States. This statement followed reported meetings with mining industry executives to discuss energy policy.
On the Flipside
- The U.S. is the largest Bitcoin mining country, accounting for an estimated 38% of the total hash rate.
- Despite banning crypto mining in 2021, China still holds 21% of the Bitcoin hash rate, indicating widespread underground operations.
- BitMEX co-founder Arthur Hayes believes Hong Kong‘s pro-crypto policy is a sign that China will eventually U-turn its ban.
Why This Matters
Wang’s critique of China’s crypto ban underscores the intricate interplay between politics, economics, and cryptocurrency. As nations navigate crypto policies, the decisions made today may influence the global economic landscape for decades.
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