HashKey CEO: Trump’s Policies Could Revive China’s Crypto Market

A favourable stance towards cryptocurrencies from Donald Trump’s administration could be a factor prompting China to lift restrictions on the digital asset market. This opinion was expressed by HashKey Group CEO Xiao Feng.

“If the US Congress and [Trump] clearly define cryptocurrency policies, consistently pass laws, and promote the industry, it will undoubtedly drive China to adopt [cryptocurrencies],” Feng noted in an interview with the South China Morning Post.

Another driver, according to the expert, is the sanctions imposed by the US and its allies against Russia, including the SWIFT blockade.

He stated that China would have needed another five to six years to adopt cryptocurrencies. Now, this combination of factors could reduce the necessary timeframe to a couple of years.

Since 2021, a ban on digital asset operations has been in place in the country, with penalties for violations including imprisonment. However, interest in cryptocurrencies has not disappeared, and the local market has gone underground.

So far, Chinese authorities have not expressed intentions to change their stance on the crypto market. Feng believes that if a “thaw” does occur, the first systems to emerge will be for clearing payments with regulated stablecoins.

According to surveys conducted by HashKey, almost all merchants in the industrial region of Yiwu have encountered questions about accepting payments in USDT and USDC. The expert linked the popularity of stablecoins to their low fees and convenience in international transfers.

Earlier, China’s Supreme Court equated cryptocurrency transactions with money laundering.