China’s Crypto Reopening Could Spark Next Bitcoin Supercycle

China could spark the next major rally in Bitcoin and other cryptocurrencies if it allows its citizens to trade them under strict regulations. This prediction comes from Joseph Chee, a former UBS banker who now leads Solana Company, a Nasdaq-listed firm holding the Solana (SOL) token. Speaking on CNBC’s Squawk Box Asia, Chee noted that Beijing is closely monitoring crypto through think tanks and academics, using Hong Kong as a testing ground for crypto adoption.

Currently, crypto trading remains illegal on the mainland, with the People’s Bank of China (PBOC) reaffirming the ban in February. Chee suggested that officials are cautious due to concerns over capital flight and the need for regulators to fully understand the market before lifting restrictions. He also highlighted that price volatility, a longstanding worry for the PBOC, remains a persistent issue.

While Hong Kong moves forward with crypto regulations, planning to license dealers, custodians, and fund managers this year, there are no signs that Beijing intends to extend these measures to the mainland. Chee’s comments come amid China’s internal financial pressures, including a record number of rural bank closures and rising bad loans.

Despite these challenges, Chee believes that if China finds a way to manage crypto trading safely, it could trigger another supercycle for the market.