China could help drive the next major crypto rally if its government eases concerns over financial risks and capital controls, according to Joseph Chee, CEO of a Solana-focused company.
Chee said on Oct. 6 that Chinese authorities are closely watching blockchain technology but remain cautious about its impact on capital flows. He said a shift in that approach could help trigger a crypto “supercycle.”
China Weighs Crypto Risks
Chee said China could eventually allow wider crypto trading if officials can manage the risk of capital leaving the country. He did not provide a timeline for any policy change.
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“The Chinese government is watching the technology development very, very closely,” Chee said, pointing to Hong Kong as a possible testing ground for China’s approach to digital assets.
Hong Kong Takes Different Approach
Hong Kong allows licensed platforms to offer virtual-asset services, while mainland China continues to restrict crypto trading. Chee’s comments therefore point to a possible policy shift rather than a reopening of China’s crypto market.
He said blockchain could also support companies and cross-border trade if authorities can keep the risks under control.
The Solana Foundation has separately launched a delivery-versus-payment program focused on settlement between financial assets and digital tokens. The initiative does not indicate that China has adopted Solana.
Chee also cautioned that greater crypto use would not eliminate market risks. “Volatility is going to be a big part of it,” he said.
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