While Hong Kong has complied with China’s cryptocurrency policy, it looks like retail trading will be permitted again in the coming months. This position contrasts with that of China, which is always opposed to cryptocurrencies.
Hong Kong is about to open up to cryptocurrencies
According to information reported by our colleagues at Bloomberg, Hong Kong could review its policy towards cryptocurrencies by re-authorizing trading under certain conditions. If this measure comes to an end, the city would place itself in opposition to China, to which she is still attached by the status of “special administrative region” (RAS), although it enjoys a certain freedom of action.
However, these potential measures remain ambiguous, because it says retail trading will be allowed without specifically approving cryptocurrencies, which is subject to interpretation.
The details of these consultations are yet to be finalized, but a licensing program should be launched next March to allow the platforms to operate in full compliance.
👉 To go further – Find our guide to buying Bitcoin (BTC)
The No. 1 exchange in the world – Regulated in France
10% off your fees with code SVULQ98B 🔥
Towards a gradual reopening of China?
When China banned cryptocurrencies for the eleventh time in September 2021, part of the ecosystem felt that the country would eventually reverse its position. Although it is still too early to judge, this is a point of view developed at length by Arthur Hayes on the BitMex blog:
“But, you have to remember that Hong Kong is the proxy through which China interacts with the world. Is this a harbinger of a reboot of Chinese crypto dominance? Will Chinese capital find its way to global crypto markets via Hong Kong? »
In this essay, he returns to the many leading players of our ecosystem which originally emerged in China. In particular, he takes the example of Bitfinex and its close ties to Tether, the issuer of the USDT stablecoin. Today, the exchange is registered in the British Virgin Islands, but originated in Hong Kong.
We must also mention Changpeng Zhao (CZ), the Chinese-Canadian founder of Binance. Indeed, the place of origin of the exchange has always been subject to debate, although it is considered as a native of China. Cryptocurrency platform FTX, too, was headquartered in Hong Kong in the past.
Through its policy, China has thus deprived itself a pool of talent and financial resources. It is therefore likely to reverse its position, as the cryptocurrency ecosystem grows more and more in the global economy.
👉 Also read – Discover our opinion and tutorial on the Binance platform
Join Experts and a Premium Community
Invest in your crypto knowledge for the next bullrun
Sources: Bloomberg, BitMex
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.