ron founder Justin Sun is calling on China to reconsider its policy of Bitcoin after the former president of the USA, Donald Trump announces plans to make America a leader of the new financial system through cryptocurrency.
Competitive Crypto Policies
During the recent Bitcoin conference, Trump is seen to fully support the expansion of Bitcoin in the United States and his goal to turn America into the world’s crypto leader. Such a position adds a new chapter to previous approaches to crypto regulation by the US authorities and defines a new standard in the policy of countries around the world. Justin Sun underlined such advantages of competition for the health of the crypto industry as it would increase development and growth in the sector.
Historical Background of China’s Crypto Policy
China has a huge history of banning and unbanning crypto activities. For example In 2017, China dominated the Bitcoin mining market with 70% of the hashrate. But new regulations turned into the negative later in that year with banning ICOS and domestic crypto trading platforms which was the beginning of the harsh anti-crypto policies from China. However, there has been persistence of Bitcoin mining because of cheap power till 2021, a complete ban was made in regard to monetary and energy issues reducing the influence of China in the global crypto business.
The Digital Yuan and Potential Policy Shifts
During the time China banned bitcoin mining and activities, the focus was concentrated in developing its state controlled stable coin the digital Yuan. Sun’s remarks are coming at a time when there are suppositions that China is gradually changing its policies, especially and particularly after Hong Kong has turned out to be one of the world’s leading crypto-friendly regions backed by Beijing.
Sun's Plea Reflects Global Crypto Shift
That is why Justin Sun’s recent request to China to fix the approach to Bitcoins can be viewed as a manifestation of the overall consequences of Trump’s crypto-friendly policy. While the US steps up to the use of cryptocurrencies, the crypto community impatiently waits for China to potentially change their policies regarding the global crypto market.
