Joseph Chee, Executive Chairman of Solana Co., has suggested that China may transition from its current strict prohibition of cryptocurrency activities towards a system of management and regulation. Speaking at Korea Blockchain Week, Chee indicated that such a shift could be influenced by the regulatory framework being adopted in Hong Kong.
China has historically maintained a stringent stance against cryptocurrencies. In 2017, Beijing banned initial coin offerings (ICOs) and crypto-based fundraising. This was followed by a significant expansion of these restrictions in 2021, when China declared crypto transactions illegal and moved to restrict mining operations. Despite these measures, Chee’s observations suggest that interest in crypto from investors, academics, and developers has persisted within China.
Chee’s perspective is that China might find it more practical to manage crypto activities rather than maintain a complete ban. This potential shift could involve allowing more crypto activity over time while maintaining strong oversight. He noted that the process is likely to be gradual.
Hong Kong’s approach offers a potential model for such a transition. In 2023, Hong Kong introduced a licensing regime that permits approved platforms to serve retail crypto investors. This dual-track system, where strict rules remain on the mainland and a more flexible, licensed environment operates in Hong Kong, could provide a blueprint for future mainland policy. Chee suggested that if Hong Kong’s regulated market continues to operate without major issues, it could strengthen the argument for crypto being manageable through supervision rather than outright prohibition.
Solana Co., a treasury company focused on acquiring the SOL token, has an interest in potential shifts in Chinese demand for crypto. Chee’s company is a separate entity from the Solana Foundation. The company’s push into Chinese cities, with events like Solana Accelerate APAC in Shenzhen in October 2025 and further events scheduled for October 2026, suggests a desire to establish relationships in anticipation of any policy changes.
However, significant uncertainties remain regarding China’s crypto policy. The exact timing of any potential shift, the specific methods of management, and the extent to which existing bans will be modified are unclear. China’s stated concerns regarding crypto have historically centered on speculation, fraud, capital flight, and financial instability. The existing bans on domestic trading, mining, and related activities on the mainland remain in force.
Chee’s argument is partly based on the observation that despite China’s attempts to remove crypto from its financial system, interest has persisted. Developer meetups, focusing on building and technical education rather than trading, have continued, presenting a different profile from the activities China has outlawed. Nevertheless, the risks associated with crypto activities in China are real, and even developer events have drawn police attention in the past.
Ultimately, Chee’s remarks suggest a potential direction of change—a slow drift toward management—rather than a definitive timeline or immediate policy reversal. The situation remains fluid, with existing prohibitions still in effect on the mainland.
Why This Matters
The materials describe a narrow update: Joseph Chee, Executive Chairman of Solana Co. The exact timing of any potential shift in China’s crypto policy.
Broader Context
Source materials place the factual news in this context: China banned crypto trading years ago. The interest never really left.
