As China’s central bank continues to print money at a breakneck pace, the country’s burgeoning love for cryptocurrency is poised to drive the digital asset market to unprecedented heights.
China and Crypto
With Hong Kong opening up to cryptocurrency and a long history as the world’s largest miner, it’s no surprise that China is viewed as a potential catalyst for the next crypto boom.
China’s crypto industry is making waves as the “China narrative” is used to sell the next bull market. Tokens that are China-related are performing incredibly well, with Conflux rising 467% during the last week, according to CoinGecko data. NEO is up 51%, and Filecoin (FIL) is up 60%.
Hong Kong’s Crypto Decision
Just a few days ago, we learned that Hong Kong’s Securities and Futures Commission (SFC) is starting a consultation process for licensing crypto exchanges to serve retail investors, after working on a consultation plan for accredited investors that goes live on June 1.
Stablecoins are also set to be regulated in the city using locally incorporated institutions and trusts. This announcement fueled expectations of an Asia-led crypto boom, after Bloomberg reported that China’s mainland government in Beijing could have quietly endorsed the idea.
Retail trading of cryptocurrencies is currently banned in Hong Kong. However, the announcement that the special administrative region of China was dipping its toes back into crypto immediately set off bullish reactions from everyday users and executives alike.
Moreover, both Gate.io and Huobi Global crypto exchanges have stated that they will apply for crypto exchange licenses in Hong Kong and comply with the relevant regulations to offer services to Hong Kong clients. Crypto users and stakeholders alike have until March 31 to partake in the SFC consultation.
Hong Kong To Replace U.S.A?
On the other hand, U.S. regulators are cracking down on Bitcoin, Ethereum, cryptocurrencies, and crypto companies following the FTX collapse last year, which sent shockwaves through the crypto market.
CEO of Coinbase, Brian Armstrong, warned that without clear legislation on cryptocurrencies and a friendly atmosphere from authorities, the United States could lose its place as a financial hub in the long run.
In addition, he said, crypto is available to everyone around the globe, with the European Union (EU), the United Kingdom (UK), and Hong Kong (HK) currently setting the pace and having the potential to get ahead of the U.S.