Hong Kong’s Crypto Ambitions Face Beijing’s Shadow
Many in the cryptocurrency sector have eyed Hong Kong as a potential gateway back into the Chinese market. However, a closer look suggests that opportunities often perceived as ‘loopholes’ are consistently met with strong opposition from Beijing, reaffirming China’s firm stance against digital assets.
Since its comprehensive ban on cryptocurrency activities in 2021, China has shown no signs of softening its position. Despite this, some companies have attempted to navigate perceived gray areas, including stablecoin initiatives in Hong Kong and other digital asset-related listings abroad.
Beijing’s Consistent Warnings
Each attempt to re-engage with the crypto space has been met with swift and decisive warnings from Chinese authorities. These responses underscore that a reversal of China’s crypto policy is unlikely in the near future.
Reports indicate that the China Securities Regulatory Commission recently advised companies to halt real-world asset (RWA) endeavors in Hong Kong. This advisory followed instances where state-owned entities retracted announcements regarding tokenized bonds and other firms divulged their RWA projects. These actions parallel earlier warnings regarding stablecoins, even after Hong Kong introduced its crypto licensing framework.
The Illusion of Loopholes
Legal experts, such as Joshua Chu, have previously highlighted that supposed loopholes in jurisdictions like Hong Kong are often illusions. He suggests that such avenues inevitably lead to intensified crackdowns, reinforcing the enduring nature of China’s original prohibition. The consistent pushback from mainland authorities indicates a clear intent to prevent any significant re-entry of crypto into its economic sphere, regardless of regional initiatives.
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