Is China about to catalyze the crypto bull market through Hong Kong?

Is China About to Stimulate the Crypto Bull Market Across Hong Kong?

Former BitMEX CEO Arthur Hayes has published an extensive report Medium article entitled “Back”.

He delved into the complex relationship between China and Hong Kong and how he hopes the latter can reclaim its place at the center of cryptocurrency. If so, what might this mean for the broader crypto market?

China’s anti-crypto stance

China’s crypto campaign has a long history, with Beijing repeatedly announcing anti-crypto measures that locals have been set to avoid.

Some speculate that the rise in popularity of tether could be attributed to the interruption of exchanges between cryptocurrencies and yuan and vice versa. Hayes alluded to this in a Medium post, where he wrote:

Cryptocurrency exchanges needed a way to fund in US dollars without compromising the banking system. Likewise, the Chinese needed a way to send dollars around the world without involving the banks.”

However, things took a decisive turn in May 2021 as the authorities repeated previous trading bans and banned financial institutions from dealing with digital assets.

June 2021 saw a ban on cryptocurrency mining, which led to a massive exodus of miners over the coming months to more compliant jurisdictions.

The final knockout came in September 2021 when the People’s Bank of China (PBoC) made cryptocurrency transactions illegal and banned exchanges from serving Chinese citizens.

The PBoC Notice He spoke about the necessity of curbing illegal and criminal activities resulting from the trading of digital assets to maintain national security and social stability.

“Virtual currency trading activities have increased, disrupting the economic and financial system, generating illegal and criminal activities such as gambling, illegal fundraising, fraud, pyramid schemes and money laundering, seriously endangering the safety of people’s property.

Hayes said that with the mainland crackdown on cryptocurrency, Hong Kong has become a “less friendly place” for digital assets. With the position of its crypto center bit by bit dwindling, Beijing’s no-virus policies have speeded it up.

Hong Kong wants to regain the center of cryptocurrency

However, according to Hayes, “Hong Kong wants crypto back.” As he explained in a Medium post, “Hong Kong is the agent through which China interacts with the world.”

Hong Kong (the deep-water port at the mouth of the Pearl River Delta) has long been China’s window to the world. Whether it’s shipping, capital, or drugs offered by the greatest drug dealer in human history (the British crown), Hong Kong has historically been the place where China and the West met.”

On October 17, Elizabeth WongThe head of fintech at the Securities and Futures Commission said the regulator is considering allowing retail traders to invest directly in cryptocurrencies.

Under current rules, only professional traders can invest in cryptocurrencies – which are defined as individuals with a portfolio of at least HK$8 million (US$1.02 million).

If enacted, retail participation in Hong Kong would draw a clear distinction between mainland policies on the matter. Thus emerges the “one country, two systems” policy often promoted by Hong Kong lawmakers.

Despite Hong Kong’s pluralistic democratic political system, Beijing’s reform of legislative elections makes it difficult Anti-Chinese candidates To take office at the highest levels. However, it is fair to say that what is happening in Hong Kong must first be approved by China.

Taking into account the proxy relationship with Hong Kong, Hayes wonders if this is a sign that China is trying to regain the crypto dominance it ditched last year.

If so, the implications for the broader crypto market could be far-reaching in terms of stimulating the upside. Hayes said:

“When we cooked [sic] He loves cryptocurrencies, the bull market will come back. It will be a slow process, but red buds are starting to appear.”

#China #Stimulate #Crypto #Bull #Market #Hong #Kong

Leave a Comment

Your email address will not be published. Required fields are marked *