Trump’s Support for Cryptocurrency May Revitalize China’s Crypto Market

As technological competition between the two countries continues to intensify, U.S. President-elect Donald Trump’s commitment to supporting the cryptocurrency industry could provide new momentum for mainland China to revive its digital asset market, according to a senior industry figure.

Xiao Feng, Chairman and CEO of HashKey Group, stated, “If the U.S. Congress and the (incoming) President clarify crypto policies, continuously legislate, and promote the industry’s development, it will certainly encourage China to embrace cryptocurrency.”

Xiao mentioned that actions taken by Washington and its Western allies in 2022—such as cutting Russia off from the Swift financial messaging system as part of sanctions intended to pressure Moscow into ceasing its invasion of Ukraine—could also persuade Beijing to support the cryptocurrency industry.

He added, “Currently, it may take China about five to six years to adopt [crypto-related business]. However, given these factors, this timeframe might shorten to two years.”

Xiao Feng, Chairman and CEO of HashKey Group

Xiao’s comments reflect the renewed enthusiasm in the cryptocurrency industry following Trump’s election. During his campaign, Trump pledged to position the U.S. at the forefront of the digital asset industry, including creating a “national strategic Bitcoin reserve” and dismantling regulatory bodies seen as anti-crypto.

On Monday, Bitcoin surged above $81,000, setting a new record high and marking a nearly 85% increase since the start of the year.

Nonetheless, the Chinese government has yet to signal any potential easing of its digital asset ban. However, Beijing has allowed Hong Kong to continue developing its digital asset sector.

Xiao suggested that if China were to resume digital asset market development, it could start by implementing a regulated stablecoin-based payment and settlement system. Stablecoins are fixed-price cryptocurrencies whose market value is tied to certain fiat currencies like the U.S. dollar or euro.

“Stablecoins are currently the best solution for cross-border business-to-consumer trade,” he explained, citing short transaction times and low fees as key reasons.

Xiao noted that the HashKey team recently conducted a survey in Yiwu, a manufacturing and trading hub in mainland China, finding that nearly all merchants had received inquiries from buyers asking if they could pay with popular dollar-backed stablecoins like USDT and USDC.

Xiao Feng’s Background in Traditional Finance

Xiao’s insights draw from his banking and finance experience before entering the digital asset space. He previously held senior positions at the Shenzhen branch of the People’s Bank of China and the Shenzhen Regulatory Bureau of the China Securities Regulatory Commission. In 1998, he founded Bosera Asset Management, one of China’s largest fund companies, and later worked in the traditional securities industry.

In 2011, Xiao joined Wanxiang Group and subsequently founded the group’s digital asset division, HashKey, in Hong Kong in 2018. HashKey operates HashKey Exchange—one of Hong Kong’s three licensed crypto exchanges—as well as other cryptocurrency and blockchain ventures.

Xiao stated that HashKey’s business covers venture capital, tokenization, and blockchain infrastructure solutions, with plans to launch its own blockchain, HashKey Chain, next month.

HashKey has been expanding its business in Asia and other global markets. The company currently has around 300 employees at its Hong Kong headquarters, 50 employees in Singapore, and 11 in Tokyo. Xiao noted that the company also has teams in Dubai, Bermuda, and Europe.

Despite many cryptocurrency companies relocating to jurisdictions like Dubai and Singapore, Xiao said HashKey remains committed to Hong Kong. “Only by staying in Hong Kong can we serve mainland China when it opens up,” he stated. “We firmly believe that day will come.”