As Hong Kong contemplates a potential consultation process to legitimize retail cryptocurrency trading within its boundaries, Bloomberg has suggested that the Chinese government in Beijing may be quietly endorsing this notion.
Beijing May Be Using Hong Kong as A Test Ground
Bloomberg reports that officials from Beijing’s Liaison Office have been attending crypto meetings in Hong Kong with a positive attitude. This has sparked speculation amongst stakeholders, who believe it may be seen as an endorsement of Hong Kong’s ambition to become the world’s leading cryptocurrency hub – much like how the Special Administrative Region of China tested open markets during the 20th century. If this is true, then it could pave the way for more innovative and progressive blockchain projects within Asia.
On Monday, the Securities and Futures Commission (SFC) of Hong Kong initiated a consultation process for Virtual Asset Service Providers (VASPs), thereby taking its first step towards legalizing retail crypto trading. Nick Chan – an NPC member and a renowned cryptocurrency lawyer- believes that Hong Kong can explore its own agenda under the ‘One Country Two Systems’ framework so long it does not jeopardize Beijing‘s financial security. He was quoted by Bloomberg saying, “As long as one doesn’t violate the bottom line, to not threaten financial stability in China, Hong Kong is free to explore its own pursuit under ‘One Country, Two Systems.’”
June 1st May Be a Turning Point For Cryptocurrencies
The regulators in Hong Kong have proposed that a due diligence process for tokens be conducted before any listing, guaranteeing only pre-approved tokens are available to traders and upholding each client’s security by limiting their exposure. Just recently, after a multi-year consultation process with exchanges was completed, professional investors (who possess an estimated net worth of $1 million or more) will become eligible as of June 1st. Unfortunately, it is still unclear when retail investors may gain access following the conclusion of the SFC’s consultation period.
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