Chinese authorities approve Hong Kong’s crypto plans: Bloomberg
Important takeaways
- Hong Kong is gearing up to become a crypto hub.
- The Chinese government is giving subtle hints of approval to the plan.
- Yesterday, a Hong Kong regulatory body outlined the terms under which retail investors would be allowed to buy cryptocurrencies.
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China is dipping its toes back into the crypto world by allowing Hong Kong to open up to the market.
One country, two systems
The Chinese government appears to be relaxing its draconian anti-crypto stance – at least in Hong Kong.
In accordance Bloomberg, Chinese officials have given subtle hints of approval of Hong Kong’s recent efforts to reposition itself as a crypto hub. The report indicates that while Beijing is nowhere close to making crypto legal again on the Chinese mainland, it seems willing to allow the city to develop its crypto industry.
The involvement of China’s Liaison Office in Hong Kong’s recent crypto rallies has been one of many good signs. Officials reportedly exchanged business cards and contact details with crypto industry leaders in a friendly manner, even going so far as to conduct follow-up calls on projects.
Another way the Chinese government has shown its approval is through explicit endorsements of the city. People’s Bank of China CEO Yi Gang recently spoke about China’s central bank digital currency and the government’s close cooperation with Hong Kong at key Hong Kong events.
“As long as the bottom line is not violated, so as not to threaten China’s financial stability, Hong Kong is free to explore its own pursuit under ‘One Country, Two Systems,'” National People’s Congress member Nick Chan told Bloomberg.
Hong Kong’s Securities and Futures Commission proposed in a consultation document yesterday to allow retail investors the ability to trade major cryptocurrencies on licensed exchanges, provided they meet several requirements. Implementation of knowledge tests, risk profiles and reasonable limits for permitted exposure will be necessary for exchanges to obtain such licenses.
Disclaimer: At the time of writing, the author of this piece owned BTC, ETH and several other crypto assets.
