Hong Kong Crypto Scene Receives China’s Support: Report


Key Takeaways

  • Hong Kong is attempting to become a crypto hub.
  • The Chinese government is showing subtle approval of the plan.
  • Yesterday, a regulatory body set out conditions so retail investors could buy cryptocurrencies.

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China seems to be opening up to the crypto world by allowing Hong Kong to be part of the market

One Nation, Two Systems

The Chinese government appears willing to loosen its strict anti-crypto stance—at least when it comes to Hong Kong.

According to Bloomberg, the Chinese government has given subtle approval to Hong Kong’s recent efforts to make itself a crypto hub again. Despite this, the mainland seems to be content to let the city develop its crypto industry.

The Liaison Office of China in Hong Kong’s recent crypto gatherings has been a positive sign. Reports say officials exchanged business cards and contact details with industry leaders in a friendly manner, even making follow up calls for projects. 

The People’s Bank of China Governor Yi Gang’s explicit endorsements of the city is another sign of approval. He recently gave speeches on China’s central bank digital currency and the government’s close cooperation with Hong Kong at important Hong Kong events. 

“As long as it does not violate the bottom-line and does not threaten financial stability in China, Hong Kong is allowed to explore its own pursuits under ‘One Country, Two Systems,’” National People’s Congress Member Nick Chan told Bloomberg.

Hong Kong’s Securities and Futures Commission published a consultation paper yesterday that allows retail investors to trade large-cap cryptocurrencies on licensed exchanges. However, they must meet certain requirements. Exchanges will need to implement knowledge tests, risk profiles, and reasonable limits on allowable exposure to obtain said licenses. 

Disclaimer: At the time this article was written, the author owned BTC, ETH and other crypto assets.

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