Beijing Supports Hong Kong to Develop Cryptocurrency Activities
2023.02.21 03:18
Beijing Supports Hong Kong to Develop Cryptocurrency Activities
By Tiffany Smith
Budrigannews.com – In contrast to the mainland’s rigid anti-crypto stance, Hong Kong’s ambition to become a cryptocurrency hub is reportedly receiving subtle support from the Chinese government.
In contrast to China’s widespread crypto ban, the Hong Kong government proposed in October last year the introduction of its own bill to regulate cryptocurrency and permit retail investors to “directly invest into virtual assets.”
People who are familiar with the situation claim that Beijing officials have not openly opposed the idea. According to a Bloomberg report from February 20, it is believed that representatives from the China Liaison Office have been attending Hong Kong crypto gatherings in an effort to learn more about the situation.
Local crypto business owners believe that Beijing, albeit subtly, may be open to using Hong Kong as a test bed because, according to those familiar with the situation, their encounters with Beijing officials on the subject so far have been friendly.
A new story about Bitcoin is developing: Hong Kong is entering the crypto market.
The fact that the People’s Bank of China is the only central bank in the world cutting rates and easing conditions makes it even more fascinating.
Because it is part of China’s Special Administrative Region, Hong Kong has its own laws and government. In accordance with the “one country, two systems” principle, the former British colony was given back to China in 1997 with the assurance that the Chinese would not interfere with the economic and political systems of the region for fifty years.
Nick Chan, a member of the National People’s Congress and digital asset lawyer, was quoted as saying that the city is free to pursue its own goals as long as there are no violations of “the bottom line, to not threaten financial stability in China.”
The Securities and Futures Commission (SFC) in Hong Kong proposed on February 20 a new crypto license regime that required all centralized exchanges in the region to have licenses from the regulator.
In addition, it proposed granting retail traders access to licensed cryptocurrency trading platforms, citing feedback from the public that suggested denying people in Hong Kong access to cryptocurrency markets could encourage them to trade on unregulated overseas platforms.
Numerous cryptocurrency businesses have sought city expansion in response to the new regulatory push. Recently, Huobi Global announced that it would apply for a license in Hong Kong and would open a new Hong Kong-only exchange geared toward institutions and wealthy individuals.
