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Zhu Guangyao, the former Chinese Minister of Finance, emphasizes the need for the government to conduct more in-depth research on cryptocurrency.
During an event at the Tsinghua PBC Chief Economist Forum in Beijing on Saturday, Zhu remarked that cryptocurrencies are a “vital component of the digital economy’s growth.”
As reported by Sina, he initially pointed out that cryptocurrencies “have detrimental impacts.” He further stated that China should thoroughly acknowledge the risks linked to this asset class within the capital market.
“However, we must examine the latest international developments and policy changes as it is a vital component of the digital economy’s advancement.”
The report mentions that Zhu referenced former US President Donald Trump’s campaign tactics and his public support for cryptocurrencies.
Trump, the leading Republican presidential candidate, stated at the Bitcoin Conference in Nashville in July that the US “must adopt cryptocurrencies, or else China will surpass us.”
Donald Trump also supported the idea of developing the industry to maintain an advantage over China.
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China’s OTC Crypto Brokers Experience Significant Inflows: Chainalysis Research
His comments follow a recent Chainalysis report revealing that Chinese over-the-counter cryptocurrency brokers are experiencing a consistent increase in activity.
According to a Bloomberg report, China’s OTC traders recorded inflows of $20 billion in each of the three quarters leading up to June. Additionally, OTC crypto brokers saw a notable rise in activity, accumulating a total of $75 billion over the past nine months.
This increase coincides with a time when Chinese citizens are turning to cryptocurrency amid negative sentiment in the country’s economy. China prohibited all crypto transactions and pledged to eliminate digital asset mining in 2021.
Eric Jardine, the lead for cybercrimes research at Chainalysis, noted that China’s ban on cryptocurrencies is “loosely enforced.”
“Considering the regulatory environment in China, including the prohibition on trading and mining cryptocurrencies, these services inevitably exist in a gray area of the economy.”
The post China’s Ex-Finance Minister Calls for More Research into Cryptos appeared first on Cryptonews.
