Recently, discussions regarding the new policy on Crypto Assets have sparked widespread follow. Although this policy aims to promote innovation, it may also bring a series of potential risks and challenges that are worth our in-depth consideration.

First, the issue of regulatory arbitrage may intensify. Some companies may choose to relocate their headquarters to countries with more lenient regulations, such as the United States or Japan, while retaining only their technical departments in regions with strict regulations like India. This strategy could lead to tax revenue loss, impacting the finances of various countries to different extents.

Secondly, the possibility of systemic risk transmission cannot be ignored. If a large number of 401(k) retirement funds flow into highly volatile Crypto Assets, it may transmit risks to the traditional financial sector through the pension system, posing a potential threat to the entire financial ecosystem.

In addition, geopolitical friction may intensify as a result. In the competition for dominance in digital currency, the struggle between China and the United States may escalate. For example, the U.S. may restrict Chinese mining companies from listing in the U.S., while China may expand the application of digital yuan in cross-border settlements with ASEAN countries.

These potential risks and challenges remind us that while embracing financial innovation, we must also be vigilant about the possible negative impacts. Governments, regulatory agencies, and market participants around the world need to work together to build a safe, stable, and vibrant digital financial ecosystem.

In this rapidly changing fintech era, balancing innovation with risk control, national interests with global cooperation, will be an important issue for all parties. We look forward to seeing more visionary policies and measures that promote the healthy development of the Crypto Assets industry while effectively managing potential risks.