HashKey CEO: Trump’s Support for Crypto Could Spur China to Reconsider Crypto Regulations
HashKey Group chairman Xiao Feng believes that Donald Trump’s pro-crypto stance might push China to revisit its approach to digital assets. In an interview with the South China Morning Post, Xiao shared that if the U.S. under Trump’s leadership actively promotes the cryptocurrency sector, it could prompt Beijing to accelerate its adoption of crypto businesses.
Despite China’s strict bans on crypto trading, mining, and initial coin offerings, Xiao suggested that U.S. geopolitical moves-like sanctions against Russia for its actions in Ukraine-could influence China to adopt a more favorable stance on digital assets sooner than expected. Xiao estimated that, without these influences, China might have taken five or six years to ease its crypto stance, but the timeline could now shrink to around two years.
During his campaign, Trump emphasized his intention to make the U.S. a global leader in cryptocurrency by removing regulatory barriers he views as anti-crypto. Xiao views this pro-crypto commitment as a potential motivator for China, which has traditionally regarded cryptocurrencies as a threat to its financial stability and a source of potential criminal activity.
For now, however, there are no indications that Beijing is diverting from its state-controlled digital currency agenda. China recently introduced a central bank digital currency payment card that functions like a regular debit or credit card, while also displaying dynamic QR codes for payments and offering real-time balance updates.
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