Justin Sun calls for China to reassess crypto position

Tron founder Justin Sun has urged China to reconsider its stance on cryptocurrency and adopt friendly policies.

Sun’s call to action comes on the heels of former President Donald Trump’s speech at the Bitcoin 2024 event, where the former president pledged to prevent China from dominating the global digital asset industry.

Sun sees the US-China crypto rivalry as a positive force

In a July 28 post on X, Sun urged China to advance its crypto regulations in response to former President Donald Trump’s recent support for Bitcoin. Sun stated that US policies have heated up since President Trump pushed Bitcoin.

China must also step up. Since President Trump pushed Bitcoin, US politics have heated up. China should make more progress in this area. Competition between China and the US in Bitcoin politics will benefit the entire industry.

— HE Justin Sun 孙宇晨 (@justinsuntron) July 28, 2024

Trump made his remarks on July 27 at the Bitcoin 2024 event in Nashville, Tennessee. He emphasized the need for the United States to adopt cryptographic technologies, saying that China is already making too much progress.

On the other hand, Sun is positive about the potential rivalry between the two superpowers, believing it would benefit the broader crypto industry. He has consistently expressed the hope that China will be more supportive of crypto assets. Earlier this month, Sun argued that the perception of China’s anti-crypto policies is exaggerated.

Market analysts stress that Bitcoin’s unique properties as “digital gold” could be crucial in global geopolitics. They speculate that Trump’s endorsement of Bitcoin could push China to reconsider its approach to the digital asset.

According to data from Bitcoin Treasuries, both the US and China hold significant Bitcoin reserves, with a combined total of around 400,000 BTC. However, their regulatory pathways seem to be divergent.

China’s strict crypto regulations persist

The Chinese government has maintained a strict stance against activities that promote speculation in virtual currencies or deviate from the needs of the real economy since 2017. In September 2021, China stepped up its crackdown on mining crypto, which caused many mining operations to move out of the country.

Major crypto exchanges such as Binance and OKX, which originated in China, have since moved their operations elsewhere due to the unfavorable regulatory environment.

Beijing has implemented restrictions on various crypto-related activities. Financial companies are prohibited from facilitating crypto payments and startups are also restricted from using blockchains to raise money.

Despite these measures, cryptocurrency trading remains popular, with many citizens finding ways around these limitations. Beijing is also making significant investments in blockchain and Web3 technologies.

Meanwhile, earlier this month, Sun said China may reconsider its strict stance on cryptocurrencies following its legal victory against Chongqing Business Media Group. The court ruled that the media group’s allegations that Sun was suspected of insider trading and under investigation by the FBI were “completely unfounded.” Sun called the legal victory “very important” for the industry.

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