Former Chinese Finance Minister Urges Crypto Study After U.S. Bitcoin ETF Policy Shift

According to Cointelegraph: Lou Jiwei, former Chinese finance minister, has emphasized the need for China to closely monitor cryptocurrency developments, especially following the recent policy shift in the United States regarding Bitcoin exchange-traded funds (ETFs). Speaking at the 2024 Tsinghua Wudaokou Chief Economists Forum in Beijing, Lou stressed the importance of assessing both the risks and opportunities posed by cryptocurrencies, as reported by Sina Finance.Lou highlighted the potential threats of cryptocurrencies to financial stability, including their volatility and association with money laundering. He also drew attention to the U.S. Securities and Exchange Commission's approval of spot Bitcoin ETFs, which signals a shift in the U.S. regulatory stance toward cryptocurrencies.The former minister warned of the risks that digital currencies pose to global markets, particularly in terms of financial instability due to extreme price fluctuations. He also expressed concerns over the role of cryptocurrencies in anti-money laundering (AML) and anti-terrorism financing.Lou urged Chinese policymakers to pay close attention to these international policy changes, stressing the importance of understanding the evolving global landscape. He noted, “We also need to study the latest international changes and policy adjustments because they are crucial for the development of the digital economy.”Despite China’s ban on Bitcoin mining and trading since 2021, the country still controls over 55% of the global Bitcoin mining network through mining pools. However, this dominance is shifting, with U.S. mining firms now managing around 40% of Bitcoin mining operations, primarily catering to institutional miners, according to CryptoQuant CEO Ki Young Ju.