China’s Crypto Stance: A Firm Grip Despite Hong Kong’s Lure
Despite ongoing interest from businesses, China’s 2021 cryptocurrency ban remains firmly in place. While some firms explore avenues in Hong Kong and through international listings, these efforts often face swift rejections and warnings from Chinese authorities.
Hong Kong’s Limited Autonomy
Hope for a regulatory workaround in Hong Kong has been a recurring theme. Recent announcements from the region regarding stablecoin frameworks have generated speculation. However, these developments have consistently been met with cautious responses from Beijing.
Lawyer Joshua Chu highlights that perceived loopholes in jurisdictions like Hong Kong frequently prove to be temporary. Chinese authorities have a history of reiterating their strict stance on digital assets, even as companies attempt to navigate around the ban.
Recurring Warnings and Asset Tokenization
Recent reports indicate the China Securities Regulatory Commission (CSRC) has advised companies to put a hold on real-world asset (RWA) ventures in Hong Kong. This advice followed instances of state-owned entities retracting plans for bond tokenization and other companies disclosing RWA projects.
These events underscore a pattern of proactive intervention by Chinese regulators. They have previously issued warnings concerning stablecoins, notably after Hong Kong began implementing its licensing framework for digital asset service providers. The consistent message from Beijing is that a reversal of its crypto policy is not imminent.
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