The People's Bank of China has shown renewed interest in cryptocurrencies, dedicating a section in the financial report for 2024. Meanwhile, Hong Kong is expanding opportunities for crypto firms.
Hong Kong's Crypto Business on the Rise
Hong Kong, despite the ban on cryptocurrency trading in mainland China, is actively developing its crypto business by launching a licensing system for crypto platforms. Since June, licensed exchanges in the region have been operating successfully, providing retail trading services. Recently, the Securities and Futures Commission of Hong Kong granted licenses to four new exchanges: HKbitEX, Accumulus, DFX Labs, and EX.IO, further solidifying the region's position as a leading Asian crypto hub.
Why is China Concerned?
The People's Bank of China highlighted in its report that Hong Kong is actively exploring crypto licensing, requiring major financial institutions such as HSBC and Standard Chartered Bank to incorporate crypto transactions in their routine customer supervision. The report underscores that cryptocurrencies might pose risks to economies, particularly concerning their application in payments and retail investments, raising concerns for the Chinese authorities.
Hong Kong Debates Stablecoin Bill
Discussions have commenced in Hong Kong's Legislative Council regarding the Stablecoins Bill. This bill, which must pass through three readings, has already successfully passed the first reading. It contains components aimed at consumer protection and closely resembles Europe's Markets in Crypto-Assets (MiCA) regulations.
China's interest in cryptocurrencies has increased for 2024, focusing on activities in Hong Kong, which significantly impact the regional development of the crypto industry.
