Regardless of Hong Kong steadily progressing with cryptocurrency adoption, mainland China has not modified its anti-crypto stance when it comes to native laws.
Some Chinese language state-affiliated banks have increasingly opened bank accounts to serve crypto clients in Hong Kong. CPIC Investment Management — a China government-backed firm 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 strategy to regulating Bitcoin (BTC) anytime quickly, in line with CPIC Funding Administration CEO Chenggang Zhou.
“The Hong Kong authorities tries very onerous to advertise Web3 and crypto, however it doesn’t indicate any modifications in mainland regulatory laws or the Chinese language authorities’s angle 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 laws enable us to spend money on completely different markets or asset courses or merchandise like cryptocurrencies, so we’re not breaching any laws or legal guidelines,” the CEO stated. He added:
“We obtained concerned in crypto as a result of Hong Kong laws enable us to try this. Nevertheless it’s under no circumstances any indication of the China authorities’s angle or coverage, or change of coverage.”
China has maintained its anti-crypto stance for a very long time, even earlier than banning crypto entirely in September 2021, Zhou famous. He stated that he doesn’t count on the native authorities to vary 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 onerous on the monetary sector, it’s onerous to think about that China is loosening its management over the flexibility for Chinese language nationals to make use of crypto,” Lesperance & Associates founder David Lesperance advised Cointelegraph.
Associated: Hong Kong court rules cryptocurrencies as property
In accordance with Lesperance, China needs to extend its international forex 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 international 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 count on any licensed crypto exchanges in Hong Kong to just accept onshore mainland residents to commerce within the exchanges,” Zhou said.
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