China is reentering the cryptocurrency business by allowing Hong Kong to become more accessible to the sector. At least in Hong Kong, the Chinese government appears eager to ease up on its harsh anti-crypto position.
Bloomberg claims that Chinese officials have been subtly endorsing Hong Kong’s recent moves to re-establish itself as a crypto hub. Even if Beijing isn’t even close to re-legalizing cryptocurrencies on the Chinese mainland, the city is ready to support the development of its cryptocurrency industry, the story claims.
Hong Kong’s Crypto Plans
The participation of China’s Liaison Office in recent crypto events in Hong Kong has been one of the promising signs. Officials have reportedly been formally exchanging business cards and contact information with key figures in the cryptocurrency industry.
Some have even reportedly made follow-up calls on projects. With outright support for the city, the Chinese government has also demonstrated its acceptance.
- Hong Kong is preparing to emerge as a cryptocurrency hub.
- Subtle cues indicate that the Chinese government supports the plan.
- Recently, a Hong Kong regulatory authority revealed the requirements for allowing individual investors to buy cryptocurrency.
At significant events in Hong Kong, People’s Bank of China Governor Yi Gang recently spoke on the nation’s digital currency and the government‘s tight relationship with Hong Kong.
According to “One Country, Two Systems,” Hong Kong is free to pursue its own goals as long as it doesn’t break the fundamental principle of not endangering the financial stability of China, said National People’s Congress member Nick Chan to Bloomberg.
In a consultation document published yesterday, Hong Kong’s Securities and Futures Commission suggested granting ordinary investors, subject to certain conditions, the ability to trade large-cap cryptocurrencies on authorized exchanges.
For exchanges to obtain such licenses, the implementation of knowledge exams, risk profiles, and appropriate limits on permitted exposure would be required.
