Justin Sun, founder of the Tron blockchain, has urged China to adopt a more forward-thinking approach to cryptocurrency policy.
Sun’s advice comes as former US President Donald Trump’s plans to position Bitcoin as a key player in the global economic landscape if he is re-elected.
China Advised to ‘Step Up’ Bitcoin Policies
On July 18, Sun used social media to call for China to advance its Bitcoin policies. He argued that increased competition between China and the US in Bitcoin regulation would benefit the industry as a whole.
“China should make further progress in this area. Competition between China and the U.S. in Bitcoin policy will benefit the entire industry,” Sun stated.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
While Sun focuses on the potential benefits of competition between the two nations for the cryptocurrency sector, market analysts suggest that Bitcoin’s distinct attributes as digital gold could become central in global power dynamics. They argue that Trump’s support of Bitcoin and its geopolitical implications might prompt China to reconsider its stance on the digital asset.
“Bitcoin and stablecoins could help counter the expansion of China’s digital authoritarianism [and] bolster U.S. sovereign debt markets,” Matthew Pines, a national security fellow at the Bitcoin Policy Institute, wrote.
Interestingly, China and the US, both major players in the global financial system, are significant holders of Bitcoin. Together, they hold approximately 400,000 BTC, according to Bitcoin Treasuries data. However, their approaches to cryptocurrency regulation have recently appeared to be diverging significantly.
Read more: Why do Hong Kong Spot Crypto ETFs Matter?
While the US, influenced by Trump’s advocacy, appears to be rethinking the sector, China has largely distanced itself from crypto. Since 2017, China has restricted cryptocurrency trading, banning banks and payment systems from handling digital assets. In May 2021, the People’s Bank of China (PBOC) declared all transactions involving Bitcoin and other cryptocurrencies illegal.
However, critics of the restrictions, like Professor Wang Yang from Hong Kong University of Science and Technology, have challenged China’s crypto ban. Wang has urged the government to reconsider its stance on crypto mining, highlighting the geopolitical risks and potential benefits of embracing the digital asset.
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