The Chinese city of Hong Kong authorities plans to legalize cryptocurrencies to make the city a global center of the crypto industry. This starkly contrasts with the rest of China, where official Beijing has banned trading and all other cryptocurrency-related activities.
As the CNBC portal reminds us, the crypto industry has had a difficult year behind it, marked by the decline of the digital currency market and the collapse of companies operating in that area.
However, despite this, Hong Kong is striving to become a center for developing virtual assets. In June, they plan to introduce new rules requiring crypto-trading platforms to be licensed by the competent Securities Commission.
Since 1997, when Great Britain relinquished sovereignty over the territory, Hong Kong has been a “special administrative region” within China for 50 years. Companies operating in the cryptocurrency market generally feel that the central government in Beijing may be able to monitor crypto developments in Hong Kong.
Amber Group sales director Justin d’Anethan said that if nothing else, China can watch the effect of the rules that Hong Kong intends to implement, the release of new products related to cryptocurrencies and blockchain-based solutions, and the growth of trade and business activities. Which will follow.
Influence on China
Some experts also believe that Hong Kong’s cryptocurrency legalization plan could be a compass for China or even a model for formulating cryptocurrency policy in other parts of the country. Provided, of course, that the model Hong Kong wants to implement proves to be successful.
While there is talk that China could loosen its stance on cryptos, there are no signs of it. Plus, it will be challenging for retail investors looking to jump into cryptos in Hong Kong.
