- China supports Hong Kong’s proposal to become a crypto hub.
- Both state officials have been checking on progress and making follow-up calls.
- According to Bloomberg, Beijing is hesitant to lift crypto restrictions.
According to a recent Bloomberg report, China supposedly supports Hong Kong’s aim of becoming a crypto powerhouse. The report claims that China’s Liaison Office members have frequently attended crypto gatherings in Hong Kong.
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According to this report, Liaison Office members’ encounters have been pleasant. Furthermore, according to sources, officials have been checking on progress, requesting reports, and, in some cases, making follow-up calls. Moreover, this was done to enable the trading of cryptocurrencies like Bitcoin and Ethereum by ordinary investors.
However, only exchangers licensed by the government will be permitted to do so. Investor protection is one of the SFC’s main priorities, and exchanges must be mindful of exposure limits, risk profiles, etc.
Hong Kong’s Securities and Futures Commission (SFC) remains committed to becoming a crypto hub, and its intention to open doors for regular trading is a significant step. It is important to remember that China requested a crackdown on cryptocurrency trading in 2021. Recently, there have been some announced small easings in the development of blockchain technology and NFTs.
Among the conditions, the SFC suggests include building up a risk profile for clients to make sure their exposure is “appropriate,” as well as a due diligence procedure on tokens before listing, which would make only pre-approved tokens available to traders.
Concurrently, reports stated that Beijing is reluctant to lift the ban. This could be because of concerns about consumer safety, money laundering, and the environmental impact of Bitcoin mining.
However, according to experts, as long as fundamental principles do not break the rules, China’s financial stability should not be in danger. They said that under ‘One Nation, Two Systems,’ Hong Kong can pursue its interests.
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