- The Chinese Government has been supporting Hong Kong to accomplish the city’s dream to be a crypto hub.
- The support seems contrasting to the mainland’s strong opposition to the crypto industry.
- When the city proposed an individual crypto regulatory bill, the Beijing government approached it in a friendly manner.
According to recent expositions, the Chinese Government has been laying support to Hong Kong in accomplishing the city’s ambition to become a crypto hub, in contrast to the mainland’s strong opposition to the crypto industry.
Significantly, on Monday, the Securities and Futures Commission (SFC) of Hong Kong started a consultation process for Virtual Asset Service Providers (VASPs), marking its first move to flourish retail crypto trading.
In addition, SFC proposed the due diligence process on tokens prior to listing, facilitating the traders only with pre-approved tokens. Also, it necessitated a risk profile for the users to ensure that their exposure is reasonable.
Notably, the Beijing authority had not been strongly objecting Kong Kong’s development in the crypto industry. When in October, the Government of Hong Kong proposed to introduce its own crypto regulating bill, allowing retail investors to “directly invest into virtual assets” Beijing took effort to understand the necessity of the requirement.
Though the proposal challenged China’s widespread crypto ban, the people familiar with the matter informed that the representatives from China’s Liaison Office and other officials have been visiting Hong Kong, analyzing the city’s crypto gatherings.
Nick Chan, a crypto lawyer and member of the National People’s Congress commented that Hong Kong has its own right to move forward in attaining its goal. Furthermore the lawyer stated:
As long as one doesn’t violate the bottom line, to not threaten financial stability in China, Hong Kong is free to explore its own pursuit under ‘One Country, Two Systems.
It was understood that the officials engaged with the procedures had a friendly approach, which directs to the expectation that Beijing would support Hong Kong to become a flourished crypto city.