Justin Sun Urges China to Update Bitcoin Policies

Justin Sun, the founder of the Tron blockchain, is urging China to improve its Bitcoin policies. He believes stronger competition with the US would benefit the crypto industry. This call comes as China continues to restrict cryptocurrency activities. Sun's plea for China to adopt a more progressive cryptocurrency policy aligns with former US President Donald Trump’s plans to make Bitcoin a key part of the global economy if he returns to office.

On July 18, Sun used social media to advocate for better Bitcoin policies in China. He argued that competition between China and the US in Bitcoin regulation would benefit the entire industry. “China should make further progress in this area. Competition between China and the U.S. in Bitcoin policy will benefit the entire industry,” Sun stated.

While Sun highlights the potential benefits of competition, market analysts believe Bitcoin’s role as digital gold could become crucial in global power dynamics. Trump’s support for Bitcoin might push China to rethink its stance on digital assets. “Bitcoin and stablecoins could help counter the expansion of China’s digital authoritarianism [and] bolster U.S. sovereign debt markets,” wrote Matthew Pines, a national security fellow at the Bitcoin Policy Institute.

China and the US, both major players in global finance, hold about 400,000 BTC together, according to Bitcoin Treasuries data. However, their approaches to cryptocurrency regulation are diverging significantly. The US, influenced by Trump’s advocacy, is rethinking the sector, while China has largely distanced itself from crypto. Since 2017, China has restricted cryptocurrency trading, banning banks and payment systems from handling digital assets. In May 2021, the People’s Bank of China (PBOC) declared all transactions involving Bitcoin and other cryptocurrencies illegal.

Critics like Professor Wang Yang from Hong Kong University of Science and Technology have challenged China’s crypto ban. Wang has urged the government to reconsider its stance on crypto mining, highlighting the geopolitical risks and potential benefits of embracing digital assets.

China’s strict stance on cryptocurrency began in 2017, with restrictions on trading and a ban on banks handling digital assets. The PBOC intensified these measures in May 2021 by declaring all transactions involving Bitcoin and other cryptocurrencies illegal. These actions are part of China's broader strategy to control financial transactions and prevent capital flight.

However, critics argue that these restrictions could have geopolitical disadvantages. Professor Wang Yang believes that embracing cryptocurrencies could offer significant benefits, especially in global competition with the US. In contrast to China’s restrictive policies, the US is reconsidering its approach to the crypto sector. Former President Donald Trump has proposed making Bitcoin central to the global economy, which could significantly impact the industry and global financial dynamics.

Analysts suggest that Trump’s support for Bitcoin could push China to change its stance. The potential for Bitcoin and stablecoins to counter China’s digital authoritarianism and support US debt markets has been highlighted by experts like Matthew Pines. If the US adopts a more crypto-friendly approach, it could encourage China to revise its policies.

Sun’s call for China to enhance its Bitcoin policies underscores the importance of competition in the crypto industry. By encouraging China to compete with the US in Bitcoin regulation, Sun believes the entire industry could benefit. This competition could drive innovation, improve regulations, and create a more dynamic crypto ecosystem.

In summary, Justin Sun’s appeal for China to improve its Bitcoin policies comes at a crucial time for the cryptocurrency industry. With the US showing signs of embracing a more proactive approach to crypto regulation, China faces a choice: continue its restrictive policies or adapt to the changing global landscape. The outcome of this competition could significantly impact the future of Bitcoin and the broader crypto market.