important point
- Hong Kong is preparing to become a cryptocurrency hub.
- The Chinese government has given subtle hints of approval to the plan.
- Yesterday, a Hong Kong regulator outlined the terms under which retail investors can buy cryptocurrencies.
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China is stepping into the crypto world by allowing Hong Kong to open up to the market.
One country, two systems
The Chinese government, at least in Hong Kong, seems keen to ease its tough stance on cryptocurrencies.
according to bloombergChinese officials have given a subtle hint of endorsement of Hong Kong’s recent efforts to reestablish itself as a crypto hub once again. It’s not even close again, but it does indicate that the city seems eager to develop the cryptocurrency industry.
The Chinese Liaison Office’s involvement in the recent crypto rally in Hong Kong is one of many good signs. Officials have reportedly exchanged business cards and contact details with the crypto industry leaders amicably, even making follow-up calls on the project.
Another way the Chinese government has shown its approval is through the city’s explicit endorsement. People’s Bank of China Governor Yi Gang recently delivered a speech at a major Hong Kong event about China’s central bank’s digital currency and close cooperation between the government and Hong Kong.
“In order not to threaten China’s financial stability, Hong Kong is free to pursue its own pursuits under ‘one country, two systems’, as long as it does not harm its interests,” National People’s Congress lawmaker Nick Chan told Bloomberg. can do,” he said.
Hong Kong’s Securities and Futures Commission yesterday proposed in a consultation paper to allow retail investors the ability to trade cryptocurrencies at large scale on licensed exchanges, provided they meet several requirements. Acquiring such a license requires the implementation of knowledge tests, risk profiles and reasonable limits on allowable exposures for an exchange.
Disclaimer: At the time of writing, the author of this article owned BTC, ETH, and several other crypto assets.