“China Crypto Pump” Hype: Could It Be The Next Big Thing For Cryptocurrencies?
As China’s central bank continues to print money at a breakneck pace, the country’s burgeoning love of cryptocurrency is poised to propel the digital asset market to unprecedented heights.
China and Crypto
With Hong Kong opening up to cryptocurrency and a long history as the world’s largest miner, it’s no surprise that China is seen as a potential catalyst for the next crypto boom.
China’s crypto industry is making waves as the “China narrative” is used to sell the next bull market. China-related tokens are performing incredibly well, with Conflux surging 467% over the past week, according to CoinGecko data. NEO is up 51%, and Filecoin (FIL) is up 60%.
Hong Kong’s crypto decision
Just a few days ago, we learned that Hong Kong’s Securities and Futures Commission (SFC) is starting a consultation process for licensing crypto exchanges to serve retail investors, after working on a consultation plan for accredited investors to go live on June 1.
Stablecoins are also to be regulated in the city using locally incorporated institutions and trusts. That announcement fueled expectations of an Asia-led crypto boom, after Bloomberg reported that mainland China’s government in Beijing may have quietly backed the idea.
Retail trading of cryptocurrencies is currently prohibited in Hong Kong. However, the announcement that the Special Administrative Region of China was dipping its toes back into crypto immediately sparked bullish reactions from everyday users and executives alike.
Moreover, both Gate.io and Huobi Global crypto exchanges have stated that they will apply for crypto exchange licenses in Hong Kong and comply with the relevant regulations to provide services to Hong Kong customers. Both crypto users and stakeholders have until March 31 to participate in the SFC consultation.
Should Hong Kong replace the US?
On the other hand, US regulators are cracking down on Bitcoin, Ethereum, cryptocurrencies and crypto companies after the FTX collapse last year, which sent shockwaves through the crypto market.
Coinbase CEO Brian Armstrong warned that without clear cryptocurrency legislation and a friendly government atmosphere, the US could lose its place as a financial hub in the long run.
Additionally, he said, crypto is accessible to everyone around the world, with the European Union (EU), United Kingdom (UK) and Hong Kong (HK) currently setting the pace and having the potential to overtake the US
