• Mainland China is reportedly onboard with Hong Kong’s recent push to embrace crypto.
• Representatives from the mainland have been attending crypto gatherings in the city and making follow-up calls.
• Beijing is said to be using Hong Kong as a testing ground for digital assets while keeping a tight rein on such activity on the mainland.
China Onboard with Hong Kong’s Crypto Push
Mainland China is reportedly onboard with Hong Kong’s recent push to embrace crypto. Representatives from mainland China are closely following and reporting on the crypto developments in the island city, indicating that Beijing is seemingly supportive of the move. This has helped to encourage mainland Chinese firms to return to the city.
Liaison Office Attending Crypto Gatherings
Local crypto operators have revealed that representatives from China’s Liaison Office, along with other officials, have attended Hong Kong’s crypto gatherings in the past few months. The meetings have been friendly, with officials checking on developments, asking for reports, and in some cases, making follow-up calls. This presence indicates that Chinese officials are interested in using the city as a testing ground for digital assets while keeping a tight rein on such activity on the mainland. People familiar with the matter revealed that mainland representatives in Hong Kong are reporting their findings back to their superiors in mainland China, although it remains unclear what this information will be used for.
SFC Consultation Process
The Securities and Futures Commission (SFC) has initiated a consultation process to allow Virtual Asset Service Providers (VASPs) to apply for licenses to offer trading services for retail investors. The regulator has set requirements for VASPs seeking licenses, including due diligence processes prior to token listing and risk profiles for clients among others limitations regarding exposure levels.. It is uncertain when this process will conclude but it appears that there is support from Beijing that may help expedite its completion date.
One Country Two Systems
According National People’s Congress member and crypto lawyer Nick Chan stated: „As long as one doesn’t violate the bottom-line, which threatens financial stability in China, Hong Kong is free explore its own pursuits under ‚One Country Two Systems‘.“ This suggests that Beijing is willing to let certain activities take place without hindrance from government regulations if no laws are broken – leaving room open for further development within cryptocurrency sector of this island city .
Overall it appears that there is an unspoken approval by Beijing of Hong Kong’s efforts towards becoming a leading hub for cryptocurrencies despite remaining cautious about its implications domestically due do closer oversight of activities taking place within their borders .