- China is reportedly on board with Hong Kong’s recent push to adopt cryptocurrencies.
- Mainland Chinese representatives are closely monitoring and reporting on crypto developments in the island city.
Hong Kong Island seems to have indirect recognition of the mainland. Porcelain For its recent move to attract crypto investors to establish itself as a crypto hub. Recent reports suggest that Beijing is on board with the move, which has helped encourage mainland Chinese companies to return to the city.
Chinese Representative Closely Follows Hong Kong Crypto Developments
according to a report from Bloomberg Posted on Feb. 21, Chinese Liaison Office representatives, along with other officials, have been involved in Hong Kong crypto meetings in recent months. The meetings have been friendly, with officials reviewing developments, seeking reports and, in some cases, making follow-up calls. The Liaison Office is the main body of the mainland in the island city.
Local crypto traders have said that the presence of officials at these events helped to dispel any doubts about Beijing’s attitude towards Hong Kong’s efforts to become a crypto hub. The subtle endorsement also suggests Chinese authorities are interested in using the city as a testing ground for digital assets while maintaining tighter controls on such activity on the mainland.
People familiar with the matter revealed that mainland representatives in Hong Kong are reporting their findings to their superiors in mainland China, although the purpose of these reports is still unclear.
The Securities and Futures Commission (SFC) has launched a consultation process to allow virtual asset service providers to apply for a license to offer trading services to retail investors. The regulator has set requirements for licensed VASPs, including token due diligence processes prior to listing, a risk profile for clients to ensure their exposure is adequate, and limits on allowed exposure.
It is unclear when the SFC’s consultation process to allow cryptocurrency trading for retail investors will conclude.
According to Nick Chan, a member of the National People’s Congress and a cryptocurrency advocate,
“As long as no one violates the bottom line, financial stability in China is not threatened, Hong Kong is free to explore its quest under ‘One Country, Two Systems’.”
