Crypto Developments in Hong Kong: No Change to China’s Stance6. May 2023
• China has not softened its stance on cryptocurrencies despite progress in Hong Kong.
• CPIC Investment Management, a company backed by the Chinese government, launched two cryptocurrency funds in April.
• According to CEO Chenggang Zhou, Hong Kong’s developments don’t imply any changes in mainland regulatory regulations or the Chinese government’s attitude toward crypto.
Crypto Developments in Hong Kong
China’s approach to regulating Bitcoin (BTC) remains unchanged despite crypto developments in Hong Kong. Some Chinese state-affiliated banks have opened bank accounts to serve crypto clients in Hong Kong and CPIC Investment Management—a China government-backed firm regulated as a Hong Kong entity—launched two cryptocurrency funds in April.
Anti-Crypto Stance Not Softening
Despite these developments, CEO Chenggang Zhou of CPIC Investment Management emphasized that mainland China has not softened or will soften its stance on cryptocurrencies anytime soon. He stated that although CPIC Investment Management operates as a Hong Kong entity regulated by the Securities and Futures Commission, it does not mean that there is any indication of change from the Chinese government’s attitude or policy towards crypto.
CPIC Investment Management
CPIC Investment Management is a company backed by the Chinese government which operates as a Hong Kong entity regulated by The Securities and Futures Commission (SFC). The SFC regulations allow investors to invest into different markets or asset classes such as cryptocurrencies without breaching regulations or laws.
Hong Kong Government Promoting Web3 and Crypto
The CEO of CPIC further noted that the Hong Kong government has been actively promoting Web3 and crypto technologies; however this does not mean that there are any changes towards regulations from the mainland regulatory authorities or from China’s government attitude towards cryptocurrency.
China’s Crypto Stance Unchanged
To conclude, despite progress made with cryptocurrency adoption within Hong Kong, mainland China has maintained its anti-crypto stance and has no plans to soften their approach to regulation Bitcoin anytime soon according to CPIC Investment Management CEO Chenggang Zhou.