Hong Kong approves digital asset trading for retail investors, aiming to rebrand as a crypto hub. However, despite being a special administrative region of China, the world’s second-largest economy is not opening up to crypto just yet. Sean Lee, Co-Founder of Odsy Network and a senior advisor at the Crypto Council for Innovation, stated that the move does not mean that China has changed course and reopened to the world of Web3 and Bitcoin. Lee believes Hong Kong aims to rebrand as a crypto hub, but expects China’s anti-crypto stance to persist.
Hong Kong’s Crypto Trading Rules Do Not Indicate China’s Acceptance, According to Leon Li
China has some of the world’s strictest crypto regulations, having banned digital asset trading and mining in 2021. Leon Li, the advisor to Hong Kong-based crypto mogul Justin Sun, dismisses recent speculation of the country’s crypto acceptance. He believes that Beijing’s recent local government Web3 whitepaper is not a sign of a crypto-friendly China.
Hong Kong, once a major crypto hub, now allows retail investors to trade crypto under strict rules. This has led some to believe that China will open up to digital assets, as it controls Hong Kong. However, Li believes that this is not the case and that China is still not ready to embrace crypto.
Hong Kong’s Regulatory Sandbox Paves the Way for Crypto Innovation, Says Charles Lee
Hong Kong has become a regulatory sandbox for China, allowing the country to test out cryptocurrency regulations. According to Charles Lee, founder of Litecoin, this move benefits the city and attracts crypto investment. Lee suggests that involving institutions in the cryptocurrency market and creating retail products by big players can be game-changing. (https://editorialrm.com) Hong Kong’s decision could significantly advance the acceptance of cryptocurrency and blockchain technology in China.
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