HashKey Capital explores new prospects for cryptocurrency and Web 3.0 in Asia. A recent interview discussed China's potential reconsideration of digital currencies and Hong Kong's role in this transition.
Hong Kong as China's Testing Ground
Hong Kong often acts as a gateway to mainland China, serving as a testing ground for new financial and technological innovations. According to HashKey Capital CEO Chao Deng, discussions with regulators suggest a willingness to use the "one country, two systems" approach to explore crypto and Web3 applications.
China's Changing Attitude Towards Cryptocurrency
China was once a global hub for crypto trading and mining until strict regulations were imposed in 2013. With Donald Trump's election victory in 2024, China’s stance on cryptocurrency has softened somewhat. However, cryptocurrency is still not recognized as legal tender by China's central bank, and regulation takes longer than expected. According to Red Date Technology CEO Yifan He, regulators have started paying more attention to digital assets, making the possibility of lifting restrictions more likely.
HashKey Capital Expands Its Capabilities
On March 19, HashKey Capital secured a Type 1 license from the Hong Kong Securities and Futures Commission to provide crypto-backed brokerage services for retail and professional investors. The firm already holds a Type 9 license for asset management and a Type 4 license for advisory services. The new license allows for a broader range of investment opportunities.
Hong Kong and China may reconsider their stance on the crypto industry, opening up new opportunities for major market players.
