Solana CEO Says China Crypto Reopening Could Spark New Supercycle

Solana Company CEO Joseph Chee has suggested that China could spark a new crypto “supercycle” if it reopens access to trading and broader blockchain applications. Speaking to CNBC International on October 6, Chee highlighted that Chinese authorities are closely monitoring blockchain technology while balancing concerns around capital controls and financial stability. He noted that Hong Kong is serving as a testing ground for how Chinese regulators might approach blockchain and crypto adoption.

Chee emphasized that capital flight remains a key concern for Beijing as it considers reopening crypto markets. While Hong Kong has introduced a licensing system for virtual-asset platforms, mainland China maintains strict restrictions on cryptocurrency trading. Chee’s comments describe a potential future policy shift rather than an imminent reopening, as Chinese authorities would need to address risks associated with digital assets.

Separately, the Solana Foundation launched Solana DvP, an open-source delivery-versus-payment program designed for institutional settlement of tokenized assets. This development is unrelated to Chee’s comments about China. Additionally, Chee addressed the continued volatility of digital assets, cautioning that investors need to understand the risks before trading or investing in crypto.

China’s Ministry of State Security recently warned that crypto transactions are not fully anonymous, stating that blockchain records can preserve transaction histories. The MSS also highlighted risks such as money laundering, cyberattacks, and espionage associated with virtual currencies. Despite these warnings, Chee believes that if China finds a way to manage these risks, a new crypto supercycle could emerge.