Bitcoin
Justin Sun Calls on China to Change Its Anti-Crypto Stance Amid Trump’s Pro-Bitcoin Agenda
Tron founder Justin Sun called on China to rethink its Bitcoin policies in response to former president Donald Trump’s recent support for digital assets and his vision of the US as a global leader in cryptocurrencies.
During the Bitcoin2024 conference in Nashville, Trump promised to ensure that the US government will “never sell” the 210,000 Bitcoins it already owns and any future BTC it acquires. He added that his administration will create policies aimed at making America a Bitcoin and crypto “superpower.”
In response, Sun highlighted the potential benefits of a competitive approach between China and the US on Bitcoin policy. He believes such competition could drive advancements and growth across the industry.
Sun said:
“China also needs to step forward.”
China and Bitcoin
Historically, China has been a leader in Bitcoin mining and trading, with miners in the country accounting for over 70% of the Bitcoin network’s hash rate in 2017. However, the country’s policy began to change later that year, with the government banning Initial Coin Offerings (ICOs) and shutting down domestic cryptocurrency exchanges.
This marked the beginning of China’s anti-crypto stance, but despite these restrictions, mining operations in the country continued to flourish due to low electricity costs, making it a dominant leader in the global mining sector for several years.
However, the local regulatory landscape changed dramatically in 2021 when Chinese Vice Premier Liu He announced a sweeping crackdown on Bitcoin mining and trading due to concerns over financial stability and environmental impacts — significantly reducing China’s presence in the global market.
The ban has remained in place ever since, making China one of the stricter countries on crypto regulation. Meanwhile, the country has been exploring blockchain technology and digital currencies through centralized means.
The People’s Bank of China (PBoC) has been actively developing and promoting the digital yuana central bank digital currency (CBDC) designed to function as a digital form of money. CBDC is fully state-controlled and aims to compete with decentralized cryptocurrencies by providing a regulated and stable alternative.
Sun’s comments come amid rumors that China may be subtly changing its stance on cryptocurrencies through its actions in Hong Kong, which is positioning itself as a burgeoning cryptocurrency hub with implicit support from Beijing.
Sun’s call for China to improve its Bitcoin policies highlights the potential advantages of fostering competition between the two largest economies. With the U.S. seemingly warming up to Bitcoin under Trump’s proposed policies, the global cryptocurrency community is closely watching how China will respond.