China’s Crypto Stance: A Persistent Ban, Not a Loophole
China’s 2021 cryptocurrency ban remains firmly in place, consistently thwarting attempts by companies to find workarounds. Despite a perceived opportunity in Hong Kong’s evolving crypto landscape, the mainland continues to send clear warnings, indicating no softening of its stance.
Hong Kong: No Backdoor to Mainland Crypto
Some firms have interpreted Hong Kong’s recent moves toward a clearer crypto regulatory framework as a potential pathway back into the Chinese market. This optimistic view, however, overlooks the consistent messaging from Beijing. The China Securities Regulatory Commission (CSRC) has reportedly advised companies to halt real-world asset (RWA) ventures in Hong Kong, reinforcing the mainland’s stringent prohibition.
Supposed Loopholes Lead to Renewed Warnings
Examples of this persistent crackdown are evident in several recent developments. A state-owned enterprise reportedly removed announcements regarding tokenizing bonds. Other companies that had revealed RWA projects also became subject to scrutiny. These incidents follow earlier warnings against stablecoins, which emerged after Hong Kong introduced its own licensing framework for digital assets.
According to legal expert Joshua Chu, these supposed loopholes in Hong Kong and other jurisdictions are ultimately illusory. He suggests that such attempts to circumvent the ban consistently result in renewed crackdowns from Beijing. The message is clear: China’s firm stance on cryptocurrency is not expected to change in the near future.
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