Potential Shifts in China’s Crypto Policy Amid U.S. Strategic Bitcoin Reserve Formation
The recent establishment of a U.S. Strategic Bitcoin Reserve by the Trump administration may prompt a reevaluation of China’s stringent approach towards cryptocurrencies. This shift could be pivotal for accelerating global adoption of Bitcoin (BTC), according to a research report released by asset management firm Grayscale on Monday.
Grayscale emphasized, “The most crucial country to monitor in this context is China.” The firm suggested that if China were to relax its current restrictions on cryptocurrencies, it could catalyze a significant increase in global adoption rates.
Last month, President Trump instructed his administration to initiate the formation of a Strategic Bitcoin Reserve. This reserve is expected to, at the very least, encompass digital assets that have been confiscated by government authorities.
Despite the prevailing ban on most cryptocurrency-related activities in China—including trading and mining—Grayscale pointed out that the Chinese government does allow for the holding of digital assets. Moreover, they noted that “policymakers have permitted the growth of crypto-related activities in Hong Kong under the ‘one country, two systems’ framework.”
Furthermore, local regulators in China appear to be reassessing the legal framework surrounding cryptocurrencies. In February, discussions took place within China’s Supreme Court and other judicial bodies regarding the future legal treatment of digital assets, indicating a potential shift in policy that could have far-reaching implications.
