Trump’s Pro-Crypto Stance May Influence China to Focus on Digital Assets – HashKey CEO

As U.S. President-elect Donald Trump sets out to make the United States a leader in digital assets, China approach to digital assets could see a significant shift, according to Xiao Feng, CEO of HashKey Group.

In an interview with the South China Morning Post, Feng expressed his belief that if the U.S. administration takes a clear stance on cryptocurrencies, China may be pressured to reconsider its strict ban on digital assets.

“If the U.S. 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 cryptocurrencies.” Xiao stated in the interview.

China Strict Stance on Digital Assets

China has always maintained a strict stance on digital assets. Since 2017, Beijing has prohibited initial coin offerings (ICOs), and in 2021, it imposed a sweeping ban on crypto trading and mining, citing concerns over the environmental costs and financial risks associated with digital assets.

However, Feng believes that China could begin its digital asset journey with regulated stablecoins, which unlike other cryptocurrencies, provide a less volatile and more predictable payment method.

In the interview, he cited a recent survey his team conducted in Yiwu, a major manufacturing hub in China, where they discovered strong interest from foreign buyers in paying with U.S.-dollar-based stablecoins like USDT and USDC. He explained that stablecoins could offer China significant advantages for cross-border business-to-consumer trade.

Additionally, Feng also believes the U.S. sanctions against Russia in 2022 for its invasion of Ukraine, which included cutting Russia off from the SWIFT financial messaging system, have highlighted the importance of decentralized financial systems.

Before these developments, Feng estimated that China might need five to six years to adopt digital assets. However, he now suggests that, with these pressures, the timeline could be shortened to just two years.

HashKey’s Strategic Position in Asia

Xiao Feng, an experienced finance executive, founded HashKey in 2018 as the digital asset arm of Wanxiang Group Corp.

The company’s operations span venture capital, tokenization, blockchain infrastructure, and other crypto-related ventures. They employ around 300 staff in Hong Kong, with additional teams in Singapore, Tokyo, Dubai, Bermuda, and Europe.

According to Xiao, despite many crypto firms having relocated to crypto-friendly jurisdictions like Dubai and Singapore, HashKey remains committed to Hong Kong in anticipation of an eventual opening of China’s crypto market.

“Only by staying in Hong Kong can we serve mainland China when that market opens up,” Feng asserted. “We firmly believe that day will come.”