Tron founder Justin Sun has recently urged China to reconsider its Bitcoin policies in response to former President Donald Trump’s expressed support for digital assets and his vision of the US becoming a leading force in the crypto world. During the Bitcoin2024 conference in Nashville, Trump made promises to uphold the 210,000 Bitcoin already held by the US government, as well as any future Bitcoin it acquires. He also revealed plans to develop policies aimed at establishing America as a dominant Bitcoin and crypto player. Sun believes that adopting a competitive approach in Bitcoin policy between China and the US could drive innovation and growth within the industry.
In the past, China was at the forefront of Bitcoin mining and trading, controlling over 70% of the Bitcoin network’s hashrate in 2017. However, the landscape changed when the Chinese government began cracking down on Initial Coin Offerings (ICOs) and domestic crypto exchanges later that year. Despite these restrictions, mining operations in China remained strong due to low electricity costs, making it a key player in the global mining sector for several years. In 2021, Vice Premier Liu He announced a comprehensive crackdown on Bitcoin mining and trading in China citing concerns about financial stability and environmental impacts. This move significantly reduced China’s presence in the global market, making the country one of the strictest in terms of crypto regulation. While China has explored blockchain technology and digital currencies through centralized means, such as the development of the digital yuan, a central bank digital currency, it has remained firm on its anti-crypto stance.
Despite China’s strict regulations on cryptocurrencies, there have been rumors of a potential shift in its stance through actions taken in Hong Kong. Hong Kong has emerged as a growing crypto hub with silent support from Beijing, indicating a possible change in China’s approach to crypto. Sun’s call for China to revamp its Bitcoin policies emphasizes the advantages of fostering competition between the two prominent economies. With the US signaling a more favorable stance on Bitcoin under Trump’s proposed policies, the global crypto community is eager to see China’s response to this shift in dynamics.
Overall, the competitive approach encouraged by Sun highlights the potential benefits of China reassessing its Bitcoin policies in light of the changing global landscape towards digital assets and crypto. As the US gears up to strengthen its position in the crypto sphere under new policies, it remains to be seen how China will adapt and whether it will embrace a more open and competitive approach towards Bitcoin regulation.