The post China to Unban Crypto? HashKey CEO Predicts Shift Amid Global Market Surge appeared first on Coinpedia Fintech News
As the U.S. races to establish itself as a global crypto hub, China could face pressure to adapt its policies. If China does relax its crypto ban, the impact on the global crypto market could be substantial, opening new avenues for investment and adoption across Asia. While a complete policy reversal is uncertain, industry leaders like Xiao Feng, CEO and Chairman of Hong Kong-based HashKey crypto exchange believe that a shift in China’s crypto space is increasingly possible, especially as major economies seek to capitalize on the sector’s growth potential.
Following Donald Trump’s election win in the U.S. Feng’s comments have stirred market speculation, especially as Trump’s win has been credited with fueling a global crypto surge and driving renewed interest in digital assets across Asia.
Is it Trump Effect Rolling in China?
Donald Trump’s pro-crypto agenda has ignited enthusiasm throughout the industry, with Bitcoin reaching a record high of $93,000 and the global crypto market cap recently surpassing $3 trillion. This “Trump effect” is driven by expectations that his policies will clear regulatory hurdles for crypto in the U.S., potentially influencing other nations, including China, to reconsider their own restrictive policies.
According to Feng, “If the U.S. Congress and the president make crypto policies clear, it would be a driving force for China to accept cryptocurrencies.” Although China currently bans crypto trading and mining, Feng believes global events, like U.S.-led sanctions on Russia, could influence China to rethink its decision. Instead of waiting five or six years, China could now embrace crypto within two years due to these pressures.
In the meanwhile, China’s recent economic measures, which include increasing debt issuance and providing support for low-income citizens, have added to the speculation. Some analysts see these steps as a signal that China could eventually loosen its crypto policies. This economic shift, combined with potential regulatory clarity in the U.S., might make China’s own regulatory stance on crypto more flexible in the coming years.
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Crypto Reaction
Overall post elections the entire crypto market is in green. Bitcoin’s rise to a new all-time high of $93K and surging altcoins indicate growing confidence in the sector, potentially reinforcing the case for China to reconsider its stance. The HashKey CEO suggests that within two years, China could start relaxing its restrictions on crypto, aligning with the bullish momentum seen worldwide.
Feng’s insights follow Trump’s recent pledges to support the digital asset sector. During his campaign, Trump promised to protect crypto businesses by dismissing SEC Chair Gary Gensler and ending restrictive policies. He also indicated the U.S. might hold its seized Bitcoin rather than selling it, signaling a strong stance in favor of crypto. This shift in U.S. policy, Feng believes, could be a “driving force” in encouraging China to open its market to digital assets in the near future.