Is China Experimenting With Crypto In Its Backyard: Hong Kong? In recent months, the city has made some decisive moves to have a clear regulatory environment for cryptocurrency companies in its jurisdiction. Hong Kong is China’s special administrative region with a separate legal system and control over its markets.
According to local government officials, the city may start cryptocurrency trading for retail investors in June. This is in stark contrast to China’s ban on cryptocurrency trading and mining within its jurisdiction, implemented in 2021.
China’s Support for Hong Kong’s Crypto Ambitions
However, a new narrative regarding the ban on crypto activities in China is now available. According to a Bloomberg reportHong Kong’s push for legal cryptocurrency trading may have quiet backing from China.
The city, which has been a global financial and commercial center, began inviting crypto companies in October. Many of those companies that are now setting up business in Hong Kong are the ones that had to shut down their operations in mainland China after the ban.
The coverage says that officials from China’s Hong Kong liaison office are increasingly being seen at crypto business events and meetings in Hong Kong. Interestingly, these officials do not disapprove of Hong Kong’s drive to become a global crypto hub.
Rather, they are seen exchanging reports and business cards, and making follow-up calls, suggesting “low-key support” for the city’s initiatives in the cryptosphere.
China’s ban on cryptocurrency trading and mining in 2021 forced some of the most reputable cryptocurrency companies, including Binance and Tron, out of the country.
“The changing attitude of the HKSAR government towards cryptocurrencies indicates that the Chinese central government has granted pilot status to HK to see how cryptocurrencies can be better adopted and localized for the broader Chinese market… I am very optimistic about the prospects of cryptocurrencies. in the Greater China region over the next decade,” Tron founder Justin Sun saying last month in an interview with Bloomberg TV.
HK Fast Pass to Crypto Hub
On Monday, the Hong Kong Securities and Futures Commission published a consultation paper outlining plans to allow retail investors to trade megacurrencies like bitcoin and ether on licensed cryptocurrency exchanges.
Last month, SCF said that post a list of highly liquid tokens that retail investors can trade, hinting that such market participants will not be able to buy or sell risky digital assets. Earlier this month, US-based Interactive Brokers. thrown out BTC and ETH trading services for professional investors on their platform along with other asset classes.
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