Former Chinese finance minister urges crypto study after US Bitcoin ETF shift

Josh O"Sullivan17 hours agoFormer Chinese finance minister urges crypto study after US Bitcoin ETF shiftLou Jiwei stressed that China must assess cryptocurrency developments, particularly as the US shifts policy on Bitcoin ETFs.5525 Total views14 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onDuring a speech at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing, former Chinese finance minister Lou Jiwei urged China to closely examine advancements in cryptocurrency.

According to Sina Finance’s report of the speech, the ex-minister highlighted the potential risks crypto poses to financial stability, including volatility and their role in money laundering.

He also noted the United States’ shifting stance toward cryptocurrencies, particularly in light of the US Securities and Exchange Commission approval of spot Bitcoin (BTC) exchange-traded funds (ETFs).

Related:Bitcoin targets $70K as stablecoin inflows and China stimulus boost rallyGlobal financial stability concerns 

Lou warned of the negative implications cryptocurrencies could have on global markets, especially due to the extent to which price fluctuations can create financial instability.

He highlighted that digital currencies have been perceived as a long-established threat to financial security, specifically noting areas such as anti-terrorism financing and Anti-Money Laundering (AML).

The ex-finance minister said these risks should be carefully considered and examined to safeguard financial systems against potential shocks.

Related:The key misunderstanding with China’s purported BTC hashrate dominanceUS crypto policy U-turn

Lou pointed out the major policy shift in the US.

The former finance minister urged Chinese policymakers to pay close attention to these international shifts in the perception of crypto assets.

He stressed the importance of studying the risks and innovations of the digital economy, particularly in light of the US acceptance of cryptocurrencies in its financial markets.“[...] we also need to study the latest international changes and policy adjustments because they are crucial for the development of the digital economy.”

Related:China still controls 55% of Bitcoin hashrate despite crypto banChina dominates crypto hashrate

Despite the country’s blanket ban on BTC mining and trading, which went into effect in 2021, China controls over 55% of the BTC mining network via mining pools.

In a Sept. 23 X post, Ki Young Ju, founder and CEO of CryptoQuant, highlighted that this BTC mining dominance is slowly shifting away to US mining firms.

Ju revealed that US pools manage around 40% of all BTC mining operations, primarily catering to institutional miners in America, “while Chinese pools support relatively smaller miners in Asia.”

Magazine:Worldcoin fined again! Crypto store clerk runs off with $500K cash: Asia Express# Bitcoin# Blockchain# Mining# China# SEC# Adoption# Bitcoin Mining# United States# Mining Pools# Regulation# Bitcoin ETF# ETFAdd reaction