Regardless of Hong Kong steadily progressing with cryptocurrency adoption, mainland China has not modified its anti-crypto stance when it comes to native rules.
Some Chinese language state-affiliated banks have more and more opened financial institution accounts to serve crypto shoppers in Hong Kong. CPIC Funding Administration — a China government-backed agency regulated as a Hong Kong entity — even launched two cryptocurrency funds in April.
All these developments don’t imply that China has softened or will soften its method to regulating Bitcoin (BTC) anytime quickly, in response to CPIC Funding Administration CEO Chenggang Zhou.
“The Hong Kong authorities tries very arduous to advertise Web3 and crypto, however it doesn’t suggest any modifications in mainland regulatory rules or the Chinese language authorities’s perspective towards crypto,” Zhou stated in an interview with Cointelegraph on Might 5.
Zhou emphasised that regardless of China authorities’s backing, CPIC Funding Administration operates as a Hong Kong entity regulated by the Securities and Futures Fee.
“Hong Kong rules enable us to spend money on completely different markets or asset lessons or merchandise like cryptocurrencies, so we’re not breaching any rules or legal guidelines,” the CEO stated. He added:
“We obtained concerned in crypto as a result of Hong Kong rules enable us to try this. Nevertheless it’s on no account any indication of the China authorities’s perspective or coverage, or change of coverage.”
China has maintained its anti-crypto stance for a very long time, even earlier than banning crypto solely in September 2021, Zhou famous. He stated that he doesn’t anticipate the native authorities to alter its crypto insurance policies within the foreseeable future.
The CEO isn’t alone in considering that China stays and can stay anti-crypto whereas making an attempt to beef up Chinese language financial institution deposits with crypto accounts.
“On condition that the Chinese language authorities is coming down arduous on the monetary sector, it’s arduous to think about that China is loosening its management over the power for Chinese language nationals to make use of crypto,” Lesperance & Associates founder David Lesperance instructed Cointelegraph.
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In response to Lesperance, China desires to extend its overseas foreign money deposits, whether or not that’s fiat to buy crypto or crypto itself. “They’re bifurcating the markets to close out home Chinese language clients however attracting overseas clients,” he famous.
The lawyer additionally famous that the crypto market in mainland China is “nonetheless successfully shut down.” That raises enforcement issues about Chinese language shoppers getting an opportunity to make use of Hong Kong exchanges to get cash out of China. “Definitely, the authorities will attempt to cease this leakage,” Lesperance famous.
CPIC’s Zhou additionally talked about that crypto exchanges in Hong Kong have strict Know Your Buyer insurance policies, which intention to limit mainland Chinese language traders on their platforms.
“I don’t anticipate any licensed crypto exchanges in Hong Kong to simply accept onshore mainland residents to commerce within the exchanges,” Zhou acknowledged.
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