Justin Sun, the founder of the Tron blockchain, has encouraged China to adopt a more progressive stance on cryptocurrency policy. His call comes as former US President Donald Trump plans to elevate Bitcoin’s role in the global economy if he returns to office.
China Urged to Enhance Bitcoin Policies
On July 18, Sun used social media to urge China to advance its Bitcoin policies. He suggested that increased competition between China and the US in Bitcoin regulation would benefit the industry overall.
“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.
Sun emphasises the potential advantages of competition between the two nations in the cryptocurrency sector. Market analysts also highlight Bitcoin’s unique role as digital gold, which could influence global power dynamics. They argue that Trump’s endorsement of Bitcoin and its geopolitical significance might lead China to reevaluate its position on the digital asset.
“Bitcoin and stablecoins could help counter the expansion of China’s digital authoritarianism and bolster U.S. sovereign debt markets,” wrote Matthew Pines, a national security fellow at the Bitcoin Policy Institute.
China and the US, both influential in the global financial system, are significant holders of Bitcoin, collectively holding about 400,000 BTC according to Bitcoin Treasuries data. However, their approaches to cryptocurrency regulation have diverged significantly.
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.
Critics of these restrictions, such as 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, pointing out the geopolitical risks and potential benefits of embracing the digital asset.
