Beijing Subtly Supports the crypto ambitions of Hong Kong
As a special administrative territory of China, Hong Kong still differs in its goals and objectives from its mainland; which is a well-known anti-crypto state, Despite this, it is likely, albeit subtly, that Beijing supports Hong Kong’s crypto ambitions.
Even after the Chinese gained back their power in Hong Kong in 1977 after British colonization, they ensured to never interfere with the political system of Hongkong and have never done in the past 50 years. They are successfully running the state under a ‘one country, two systems’ policy
China has not allowed crypto trade to secure its people as they consider that mining is harmful to the environment and can leave a negative impact on society as well because it might promote fraud and digital scams.
However, unlike the situation in Beijing, Hong Kong is trying to encourage crypto trade and intends to make it the cryptocurrency hub. Chinese officials support this stance, no matter how subtle it may be, despite their anti-crypto views People familiar with this subject have stated that Beijing officials have not entirely forsaken the idea of crypto trade.
Last year in October, the Hong Kong government raised the notion of regulating digital currency by introducing a bill that allowed investors to directly invest in virtual assets contrasting to the crypto rules in China.
However, people say that a few representatives from the Chinese liaison’s office are trying to observe the crypto trade in Hongkong for their understanding.
So far, the encounter between the Beijing officials and the hong kong government has been friendly enough to disseminate the message that the Chinese government is not entirely against their decision and might be looking to draw benefits from this situation to test the crypto trade.
Nick Chan – a national people’s congress member and a digital assets lawyer – quotes that unless there isn’t any violation of “the bottom line, to not threaten financial stability in China,” they (Hong Kong Government) can take whatever pursuits they find suitable for the state.
To foster regulated crypto trade in the state, the SFC security and futures commission put forth a licensing regime so that all the people or businesses dealing in crypto will get the license by following the security requirements.
The government had to take this decision for its people as they would’ve opted for the unregulated overseas crypto markets otherwise. Consequently, they allowed crypto trading but only under licensed cryptocurrency trading platforms.
Consequently, this decision of regulated trading has provoked several crypto businesses to expand their business even Huobi exchange most recently decided to seek a license and open a new Hongkong only exchange to cater to institutions and high net-worth people