Tron founder Justin Sun has 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 crypto leader.
During the Bitcoin2024 conference in Nashville, Trump pledged to ensure that the US government will “never sell” the 210,000 Bitcoin it already holds 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 in Bitcoin policy. He believes that such competition could drive advancements and growth within the entire industry.
Sun said:
“China also needs to step up.”
China and Bitcoin
Historically, China was a leader in Bitcoin mining and trading, with miners in the country accounting for over 70% of the Bitcoin network’s hashrate in 2017. However, the country’s policy began to shift later that same year with the government banning Initial Coin Offerings (ICOs) and shut down domestic crypto 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 comprehensive crackdown on Bitcoin mining and trading over concerns about financial stability and environmental impacts — significantly reducing China’s presence in the global market.
The ban has remained in place since then, making China one of the strictest countries regarding 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 yuan, a central bank digital currency (CBDC) designed to function as a digital form of cash. The CBDC is fully controlled by the state and is intended to compete with decentralized cryptocurrencies by providing a regulated and stable alternative.
Sun’s remarks come amid rumors that China might be subtly shifting its stance on crypto through its actions in Hong Kong, which is positioning itself as a burgeoning crypto hub with implicit support from Beijing.
Sun’s call for China to enhance its Bitcoin policies highlights the potential advantages of fostering competition between the two largest economies. With the US seemingly warming to Bitcoin under Trump’s proposed policies, the global crypto community is closely watching how China will respond.