China's Finance Minister: ”As Bitcoin ETF policy changes, we need to consider the development of virtual currencies”

China's former finance minister has argued that China should closely consider the development of cryptocurrencies following changes in the U.S.'s Bitcoin exchange-traded index fund (ETF) policy.
Lou Jiwei, former Minister of Finance of China, said in a speech at the Tsinghua Wudaokou Chief Economist Forum in Beijing that crypto assets will contribute to financial stability.
He stressed the potential risks that crypto-assets pose, particularly their volatility and role in money laundering, and urged China to closely examine the development of crypto-assets.
He also noted the U.S.'s changing stance on crypto assets, including the Securities and Exchange Commission's (SEC) approval of a physical Bitcoin ETF.
Lou Zhiwei warned of the negative impact that virtual currencies could have on global markets, emphasizing that price fluctuations in particular could cause financial instability.
"It remains a recognized threat to financial security, particularly in areas such as combating the financing of terrorism and anti-money laundering (AML)."
"These risks must be carefully considered and weighed to protect the financial system from potential shocks."
Lou Zhiwei also highlighted major policy shifts in the United States and called on Chinese policymakers to consider how international perceptions of crypto assets should be addressed.
"We also need to study the latest international changes and policy adjustments, which are of great importance to the development of the digital economy," he added.
Meanwhile, despite a total ban on Bitcoin mining and trading that came into force in 2021, China controls 55% of the Bitcoin mining network through mining pools.
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