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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.”
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
Related: DeFi Development Authorizes CHAD Buyback as Solana Treasury Expands
“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 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
Related: FPIs Are Selling India Despite Strong Growth: What It Means for Indian Crypto Traders
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