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China could trigger another crypto market super cycle if it finds a way to reopen access to digital assets, according to Joseph Chee, chief executive of Solana Company. Chee said in an interview that Beijing is using Hong Kong to test how crypto rules work in practice, Coinpedia reported on October 10, 2026.
Chee said China cannot afford to ignore blockchain technology despite its restrictions on crypto trading, adding that Hong Kong serves as the region where authorities can see how the technology gets implemented and then “find ways to manage it.” He said he expects crypto to go through another super cycle if China widens access.
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Key facts
- China holds an estimated 190,000 BTC in government-linked wallets, worth roughly $15.7 billion, per Coinpedia.
- China-linked miners are estimated to control about 14% to 20% of global Bitcoin mining power.
- A 19-measure policy described by Xinhua aims to build nationwide blockchain and computing infrastructure spanning manufacturing, banking and data sharing.
- Hong Kong is approving regulated spot ETFs, tightening audit rules for virtual asset service providers and developing stablecoins, including HSBC’s RedCoin.
- Chee, who previously led Asia investment banking at UBS, now runs Solana Company, a Nasdaq-listed firm that holds SOL tokens as its primary treasury reserve, Zycrypto reported.
Hong Kong as Beijing’s testing ground
Chee’s argument rests on the gap between mainland China’s trading ban, in place since 2021, and Hong Kong’s licensed virtual asset market. He said government officials follow crypto technology through experts and scholars, and that Hong Kong lets them examine how to relaunch and regulate cryptocurrencies before any wider mainland decision.
Coinpedia reports this approach could help Beijing study how crypto markets behave under tighter rules. Zycrypto reported that unconfirmed online claims suggest China could lift its crypto ban by year-end, though Chee did not give a timeframe. Zycrypto added that, based on Chee’s knowledge, China may not permit trading or global issuance of stablecoins.
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Why it matters
A reopening would bring Chinese traders and companies back into a market they have sat out for roughly five years, and Chee pointed to Asia’s large population and its early role in crypto adoption, saying US markets gained ground while Chinese participation was restricted. China remains one of the world’s largest government-linked Bitcoin holders even though it does not officially purchase BTC as a strategic reserve. The blockchain infrastructure push shows Beijing still wants a stake in the technology, even while token trading stays banned. If Hong Kong’s experiments translate into mainland access, the demand base for crypto would expand materially; if they do not, the super cycle thesis rests on policy signals alone. This is not financial advice, and crypto markets are volatile and uncertain.
What to watch
The concrete trigger is any formal softening of China’s restrictions, which Zycrypto reports is rumoured to arrive by the end of 2026, alongside the rollout of the 19-measure blockchain plan and continued Hong Kong stablecoin and ETF approvals. Watch whether Beijing converts its Hong Kong test bed into mainland trading access, and whether the rumoured year-end timeline is confirmed or contradicted.
Sources: Coinpedia, Zycrypto
