Hong Kong’s ambition to become a cryptocurrency hub is receiving subtle support from the Chinese government, which could be seen as a contrast to mainland China’s tough stance against cryptocurrencies..
In October last year, the Hong Kong government floated the idea of introducing its own bill to regulate cryptocurrencies and allow retail investors to “invest directly in virtual assets.”which could contrast with the widespread ban on cryptocurrencies in China.
According to people familiar with the matter, Beijing officials have not openly opposed the idea. According to a Bloomberg report on February 20, it is understood that China Liaison Office representatives have been frequenting Hong Kong cryptocurrency meetups trying to understand what is going on.
So far, his meetings with Beijing officials on the matter have been friendly, according to the people familiar.which is being perceived by local cryptocurrency traders that Beijing – albeit very subtly – may be open to using Hong Kong as a test bed for cryptocurrencies.
New Bitcoin narrative brewing: Hong Kong is getting into crypto.
What makes it even more interesting is the People’s Bank of China is one of the only central banks in the world cutting rates & easing.
Asia is bidding [sources] pic.twitter.com/n5cwE7jI2l
—Luke Martin (@VentureCoinist) February 16, 2023
A new Bitcoin narrative is brewing: Hong Kong is getting into cryptocurrency. What makes it even more interesting is that the People’s Bank of China is one of the only central banks in the world that is cutting interest rates. asia is bidding [fuentes] pic.twitter.com/n5cwE7jI2l
Hong Kong is a Special Administrative Region of China, allowing it to have its own laws and governance. The former British colony was transferred back to China in 1997 after Beijing guaranteed that there would be no Chinese interference in the region’s economic and political systems for 50 years, known as the “one country, two systems” principle. “.
Nick Chan, a member of the National People’s Congress and a lawyer specializing in digital assets, stated that as long as “the principle of not threatening China’s financial stability” is not violated, the city is free to undertake its own activities.
On Feb. 20, the Hong Kong Securities and Futures Commission outlined a new cryptocurrency licensing regime that proposed that all centralized exchanges operating in the region must be licensed with the regulator..
He also proposed allowing retail traders access to authorized cryptocurrency trading platforms.claiming that public views showed that denying access to cryptocurrency markets could lead Hong Kongers to operate on unregulated foreign platforms.
The new regulatory push has encouraged many cryptocurrency companies to seek expansion in the city.. Recently, exchange Huobi Global stated that it would apply for a local license and that it plans to open a new exchange exclusively for Hong Kong, focused on high net worth and institutional individuals.
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