Speaking at a summit hosted by Tsinghua University, Zhu emphasized the risks of crypto assets to capital markets and stated that the Chinese government should better recognize these risks and damages.

However, he also stated that examining the latest international developments and policy changes in the crypto market is of critical importance for the development of the digital economy.

Zhu’s warnings came in conjunction with Republican US presidential candidate Donald Trump’s comments on crypto. In his speech at the Bitcoin Conference held in Nashville in July, Trump said that the United States should embrace the crypto industry, otherwise China would seize this opportunity.

At that time, Trump emphasized that crypto was so important that it could be compared to the “steel industry of 100 years ago” and stated that the sector was currently in its infancy, but could one day surpass gold. “Nothing like this has ever happened before,” Trump said, drawing attention to the size of the crypto industry.

Taking Trump’s statements as a reference, Zhu said that China should develop a more strategic approach towards the crypto industry. According to Sina News, Zhu stated that Beijing should examine the crypto market more closely, especially after these comments made during the US campaign.

Warning that crypto assets have negative effects and risks to capital markets, Zhu emphasized that the government should take more careful steps to regulate this area.

But he also touched on the importance of examining the development of crypto in terms of the digital economy and policy changes internationally. Zhu stated that crypto assets and blockchain technology can play a critical role for the development of the digital economy.

Zhu also reminded that the US Securities and Exchange Commission (SEC) approved bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs) despite initially opposing them. This is considered a major turning point in the US approach towards crypto.

This move by the SEC has led to crypto markets becoming more attractive to institutional investors and is seen as an important step in the process of US adoption of crypto assets.

The Chinese mainland region, on the other hand, continues to take a cautious approach to crypto. The Chinese government has imposed strict regulations on crypto trading and mining for years, greatly restricting this area. However, China’s Hong Kong Special Administrative Region has taken a more flexible approach to crypto.

Hong Kong has a more open policy on crypto assets, as it has semi-autonomous government and market regulations. Bitcoin and ether ETFs have been listed on the Hong Kong stock exchange, and some lawmakers in the region are actively working to attract the crypto industry to the city.

Although Zhu’s speech raises questions about whether there will be a change in China’s general attitude towards crypto, it sends messages that the Chinese government needs to develop a more comprehensive strategy against the crypto industry. This becomes especially important at a time when interest in crypto is increasing internationally.