‘That’s a Big Ass No’: Hong Kong Trading Not an Indication of China’s Warming Stance towards Crypto, Expert Says

Hong Kong's renewed pursuit to become a crypto hub does not imply that China is adopting a similar stance, highlighting the separate trajectories of the two regions in terms of cryptocurrency regulation and initiatives.

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.

Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

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Kassidy Florette
Kassidy followed her friends to buy her first Bitcoin in 2015, has been participating in various projects since 2019 as a marketing communication lead. Her knowledge and passion brings her in as a contributor.