Zhu Guangyao, China’s former Minister of Finance, has called for more in-depth research into cryptocurrencies, emphasizing their importance to the country’s digital economy. Speaking at the Tsinghua PBC Chief Economist Forum in Beijing, Zhu acknowledged the negative aspects of cryptocurrencies but stressed the need for China to fully understand the risks they pose to the capital markets.
Zhu’s remarks, first reported by Sina, highlighted the significance of staying updated on international policy shifts and technological developments in the crypto space. “We must study the latest international changes and policy adjustments because it is a crucial aspect to the development of the digital economy,” Zhu noted.
He also referenced former U.S. President Donald Trump’s embrace of cryptocurrencies, pointing out Trump’s comments at the Bitcoin Conference in Nashville, where the Republican frontrunner emphasized the need for the U.S. to adopt cryptocurrencies or risk falling behind China in the digital space.
Rising Activity Among China’s OTC Crypto Brokers
Zhu’s call for more crypto research comes amidst a surge in over-the-counter (OTC) cryptocurrency trading in China. Despite a 2021 ban on crypto transactions and mining, research from Chainalysis reveals a significant increase in activity among Chinese OTC crypto brokers. According to a Bloomberg report, these traders have seen inflows of $20 billion in each of the past three quarters, totaling $75 billion over nine months.
Eric Jardine, Chainalysis’ cybercrimes research lead, noted that China’s crypto ban is “loosely enforced,” allowing OTC brokers to operate in a regulatory gray zone as Chinese citizens turn to crypto amid growing economic uncertainty.
As China grapples with the evolving global digital economy, Zhu Guangyao’s remarks underscore the importance of adapting to emerging trends in cryptocurrency, despite the government’s restrictive stance.
