US Stifling Innovation? China Seizing Crypto Opportunities

The USA is the biggest crypto market with 46 million crypto holders, but unclear rules and regulations are causing crypto investors and companies to leave the country. Meanwhile, China is opening its doors. Crypto! Welcome to China!

 Frankly, the US needs to get its sh.. together before it has created a truly unfriendly environment for innovation. The traditional finance sector and the government are both successful and unsuccessful in trying to crush crypto. Crypto regulation is still being affected by guiding principles that were created in the 1940s… and the first major blockchain Bitcoin was invented in 2009. How stupid is that? No wonder the regulatory crypto environment is a complete mess in the US. Meanwhile, arch-nemesis China, who loves money, has seen an opportunity.

 But China has not always had a passionate romance with crypto. In late 2001, China’s central bank declared all cryptocurrency-related transactions as illegal, which was the strongest move against the digital asset industry thus far. But China has banned cryptocurrencies at least 7 times…

 After considerable political struggles with mainland China, Hong Kong needed to build a business-friendly environment and has opened its doors to crypto trading. In fact, Hong Kong’s treasury chief says that they need crypto regulation, but he insists that crypto is here to stay. He is basically saying “game on” for crypto, and Hong Kong is creating a global hub for crypto.

 It is not yet clear which cryptocurrencies will be available for retail customers on exchanges, but rumors in the crypto community say Bitcoin, Ethereum, Litecoin, Solana, Cardano, and Polygon are likely cryptocurrencies. Is Hong-Kong based crypto exchanges the first step to mainland China?

 Yes, this is bullish news for the crypto industry, but it will take some time for Hong Kong-based exchanges to get approval to open up. Therefore, a “boom-to-the-moon” scenario is not likely in the short term. But Hong Kong adds to a future bull run!

 It’s strange, Chinese policymakers have embraced blockchain as a game-changer, with President Xi Jinping declaring it a cornerstone of future innovation and industrial transformation. Whereas the US president has called for an “unprecedented focus of coordinated action” from federal agencies in mitigating illicit finance and national security risks posed by cryptocurrencies. Regulate through enforcement is the hallmark of US regulatory bodies. This is stupid! Did you know, according to Chainalysis, illicit addresses made up only 0.24 percent of the total cryptocurrency transaction volume in 2022. Say no more…

 Yes, the US is ranked nr:5 in the 2022 Global Crypto Adoption Index and has come further than China which is ranked as nr:10. Western countries would like to think that the US has a brighter crypto future despite the current unclear regulations. I believe so too. I fear the future of a digital China which has complete control of its citizems financial life through a programable coin. The digital yuan is here and should be feared. 

 But US regulatory bodies need to focus more on the possibilities of blockchain technology. As well as to create a business friendly landscape. Not mostly on the 0.24 percent of the crypto volume which is bad. Let’s be smart, instead.