HashKey Group CEO Predicts China May Open Up to Crypto with a Pro-Crypto Trump Administration

A well-known Web3 industry executive thinks that a U.S. government that supports cryptocurrencies might put pressure on China to soften its strict policies around digital assets. The CEO of HashKey Group, based in Hong Kong, Xiao Feng, recently spoke with the South China Morning Post about his opinions. Feng maintained that China might eventually relax its crypto regulations and open up its market if the United States had a pro-crypto administration, especially under former President Donald Trump.

A Potential Shift in China’s Crypto Stance

China has long been hostile toward digital assets, having banned initial coin offerings (ICOs) in 2017 and outlawed crypto trading and mining in 2021. However, Feng remains optimistic about the future of crypto in China. He believes that a more supportive U.S. stance could influence Chinese authorities to reverse course. “If the US Congress and the president make crypto policies clear, constantly legislate and promote the industry, it would certainly be a driving force for China to accept [crypto],” he explained.

Feng’s firm, HashKey Group, has grown significantly in the Web3 space, with a valuation surpassing $1.2 billion as of January. With China’s growing interest in blockchain technology and decentralized finance, Feng argues that regulated stablecoins could serve as the gateway for China to re-enter the crypto market. He sees stablecoins as “the best solution for cross-border business-to-consumer trade,” which could potentially encourage China to adopt digital assets under strict regulation.

Feng’s prediction aligns with Trump’s recent shift toward supporting digital assets. While Trump had previously expressed skepticism about cryptocurrencies during his presidency, he has become more vocal about protecting and growing the industry during his campaign for the 2024 election. Over the summer, he promised to fire Securities and Exchange Commission (SEC) Chair Gary Gensler on his first day in office. Additionally, Trump pledged to end policies that hinder crypto investors and businesses, while emphasizing that the U.S. would stop selling seized Bitcoin and instead hold it as a strategic investment.

This combination of political developments in the U.S. and the continued interest in stablecoins could mark a turning point for the global crypto market, particularly in relation to China’s stance on digital assets.