Could Hong Kong really become China’s proxy in crypto?

11/18/2022 4:45:00 AM

Hong Kong recently became more crypto-friendly! Moving forward, what could this mean for Hong Kong and China?

Hong Kong recently became more crypto-friendly! Moving forward, what could this mean for Hong Kong and China?

Recent years have seen tightening political, cultural and economic control of China over Hong Kong with the national security law of 2020 sweeping the previous civil freedoms away.

An impulse to such questioning was given by Arthur Hayes, the former CEO of crypto derivatives giant BitMEX in his Oct. 26 blog post. Hayes believes the Hong Kong government’s announcement about introducing aIn late October, the head of the fintech unit at the Securities and Futures Commission (SFC) of Hong Kong, Elizabeth Wong, announced the

portfolio worth at least $1 milliondirectedAccording to him, the HKMA is in the process of establishing a regulatory regime for stablecoins and has already issued guidelines to banks about cryptocurrency or decentralized finance-related services.Starting in May 2021, Chinese regulators began prohibiting involvement in crypto for financial institutions, then mining operations and, finally, the work of exchanges and trading for individuals. Although that didn’t effectively outlaw the crypto ownership as such, any potential for institutional development of the crypto industry in the country was frozen.

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Well,they said Chinese is one of the smartest people in the world. and combine it with crypto like ReadtoEarn NFT project of EarlyMinter, then Hong Kong will become even richer in the future. Even Prof isiqat will not be surprise if ReadtoEarn will be famous in Hongkong Many of us that saw what the CCP did to Hong Kong in 2019 are never going to see Hong Kong positively. 🇭🇰 adopting crypto won’t encourage us to go back home

I DONT trust China..every yr it’s China banning btc this banning crypto that.. and now they are friendly? Sure tell that to Taiwan or keep saying it to children.. eventually they will believe u. i'm expecting to see African countries and cities following Hong Kong's steps, especially after BitDAO funding AfricaDAO's mission to drive-up web3 adoption in the continent

Hong Kong is setting themselves up for the future 🚀 ProtestCoin?

Hong Kong’s once-vibrant movie industry now walks a fine China lineHong Kong cinema was once a point of pride, with hundreds of movies produced annually. But as Chinese censorship increases in the wake of the pro-democracy protests, independent filmmakers are increasingly looking overseas to fund and show their work. Reading this piece, you almost think the US finance its own independent filmmakers. By your own standards, WaPo, the US is a dictatorship... They don't know how they are bringing down the entertainment industry when everyone wants to have an opinion over what should been shown.

U.S. imposes new sanctions over Iran sanctions evasion, targets Chinese firmsThe United States on Thursday imposed sanctions on over a dozen companies based in China, Hong Kong and the United Arab Emirates that Washington accused of facilitating the sale of Iranian petrochemicals and petroleum products to buyers in East Asia. China has the US pissing its pants. Lol. Lmao. USA government Is stupid. It is no use sanctioning some of the Chinese firms considering all of the firms are under 100% control of CCP government and they can easily change a name to escape the sanctions.

China says Xi was not criticising Trudeau in meeting at G20China's foreign ministry on Thursday said Chinese President Xi Jinping was not criticising Canadian Prime Minister Justin Trudeau, a day after Xi was seen confronting Trudeau at the G20 summit over alleged leaks from a meeting they held. He wasn't criticised he was fucked in the ass. Trudeau is like a 2 yr old child compared to President Xi. Seamos sinceros.... El primer ministro de Canadá es un chismoso y con esa ligereza le costó mucho en las relaciones diplomáticas con China

Analysis: Have China and India shifted stance on Russia war?China and India, after months of refusing to condemn Russia’s war in Ukraine, did not stand in the way of a G-20 statement in Indonesia by the world’s leading economies that harshly criticized Moscow. Are they shifting their policy? Analysis by APklug klug Errr no klug klug Betteridge's law of headlines is an adage that states: 'Any headline that ends in a question mark can be answered by the word no.' You got taught this in journalism school ! AP do better.

China to speed up vaccinations, build more designated COVID hospitalsChina plans to speed up COVID-19 vaccinations and will release information to the public in due course, the head of China's Center for Disease Control and Prevention said on Thursday. What, they still vaccinating. Mental asylums for diss... I mean COVID care facilities... ignore what I just said. InstitutionalIdiocy China ZeroCovidNutJobs

After exchange, China calls Canada's manner 'condescending'BEIJING (AP) — A Chinse spokesperson on Thursday accused Canada of acting in a “condescending manner' following a testy exchange between President Xi Jinping and Canadian Prime Minister Justin Trudeau that underscores the depths to which the bilateral relationship has fallen. China can't seem to stick with a story. I wonder why? Xi trucked Trudeau real good didn't he?

0:00 Analysis With its partial autonomy, the island city of Hong Kong has traditionally served as “a gate to China” — the local trade center, backed by transparent English-style common law and an openly pro-business government strategy..The latest U.Reuters [1/2] Canada's Prime Minister Justin Trudeau speaks with China's President Xi Jinping at the G20 Leaders' Summit in Bali, Indonesia, November 16, 2022.

Could the harbor, home to seven million inhabitants, inherit this role in relation to the crypto industry, becoming a proxy for mainland China’s experiments with crypto? An impulse to such questioning was given by Arthur Hayes, the former CEO of crypto derivatives giant BitMEX in his Oct. 26 blog post. The movie was pulled. Hayes believes the Hong Kong government’s announcement about introducing a to be a sign that China is trying to ease its way back into the market. Washington has increasingly targeted Chinese companies over the export of Iran's petrochemicals as the prospects of reviving the nuclear pact have dimmed. The opinion was immediately replicated in a range of industrial and mainstream media. The movie shows “the real Hong Kong, its atmosphere and how locals as well as the diaspora face such huge changes,” Chan explained. What happened In late October, the head of the fintech unit at the Securities and Futures Commission (SFC) of Hong Kong, Elizabeth Wong, announced the by allowing retail investors to “directly invest into virtual assets. I don't think it should be interpreted as Chairman Xi criticising or accusing anyone," Mao said.

” Up until recently, only individuals with a portfolio worth at least $1 million (which marks about 7% of the city’s population) have been granted access to centralized crypto exchanges by the SFC. Advertisement “I hope the younger generation of filmmakers can feel that we are not alone, that we don’t necessarily need to pursue the commercial path and go through official censorship,” Chan said. Treasury Department in a statement said the 13 companies designated on Thursday facilitated the sales of hundreds of millions of dollars worth of Iranian petrochemicals and petroleum products to buyers in East Asia on behalf of companies under U. The regulator has also been reviewing whether to allow retail investors to invest in crypto-related exchange-traded funds, Wong noted. Roughly a few days after, on Oct.” Other Hong Kong films that could be honored Saturday include “The Sunny Side of the Street,” which stars Anthony Wong, a popular actor who supported the city’s pro-democracy protests in 2019, and “Limbo,” a monochromatic depiction of the city’s violent side. 21, Hong Kong’s Secretary for Financial Services and the Treasury, Christopher Hu, shared his city’s fintech plans, among other efforts, directed at “transferring wealth to the next generation. Ltd.” The key is establishing a regulatory regime for virtual asset service providers, and a certain bill was already introduced to the city’s lawmakers, as Hu specified. The Golden Horse Awards, known as the Oscars of the Chinese-speaking world, are among the ever-more-important platforms for independent filmmakers such as Chan as they shift their focus offshore and seek new ways to fund their work and promote it to a broader audience. She did not say whether Trudeau bringing up alleged Chinese interference on Tuesday was the reason behind the recorded exchange between the two leaders the following day.

Finally, on Oct. 31, during the city’s FinTech Week 2022, Hong Kong Financial Secretary Paul Chan assured attendees that the digital transformation of financial services is a key priority for his team. This year, 10 Hong Kong film projects are part of it." Iran's mission to the United Nations in New York did not immediately respond to a Reuters request for comment. Chan’s colleague, the CEO of the Hong Kong Monetary Authority (HKMA), Eddie Yue, promised “radical open-mindedness” regarding the innovations. According to him, the HKMA is in the process of establishing a regulatory regime for stablecoins and has already issued guidelines to banks about cryptocurrency or decentralized finance-related services. His film also was never screened in Hong Kong. Crackdown on the Mainland, uncertainty on the island Hong Kong’s intention to open up for crypto comes a year after a devastating crackdown on the industry in Mainland China., the latest action targeting what Washington says is the Hong-based firm's evasion of U.

Until 2021, the People’s Republic Of China has been enjoying a status of a world leader in hash rate and cryptocurrency mining. The early 1990s marked its pinnacle; thanks to many eager investors, hundreds of movies were produced annually. Starting in May 2021, Chinese regulators began prohibiting involvement in crypto for financial institutions, then mining operations and, finally, the work of exchanges and trading for individuals. Although that didn’t effectively outlaw the crypto ownership as such, any potential for institutional development of the crypto industry in the country was frozen. Directors such as Wong Kar-wai captured the city’s beauty while encapsulating its identity struggle as the former British colony was transferred back to Chinese rule in 1997. Also among those targeted was Dubai-based Access Technology Trading L. Back then, Hong Kong officials didn’t confirm (or deny) that the island city would comply with Beijing’s hardline policy on digital assets, but investors nevertheless started considering their options. Recent: How are ‘lite’ versions of crypto apps helping adoption? While today it may sound ironic, in 2021, relocating his headquarters to the Bahamas, Sam Bankman-Fried of FTX was highlighting the importance of long-term regulatory guidance and clarity, which Hong Kong laced in his opinion. Others have chosen to do the same rather than put their artistic expression at risk.

This uncertainty took its toll indeed — after attracting $60 billion in crypto between July 2020 and June 2021, Hong Kong started to witness the largest players opening up alternative offices in the Caribbean or neighboring Singapore., which Treasury accused of purchasing petrochemicals from U. FTX was joined by the likes of Crypto. Not surprisingly given the antagonistic relationship between China and Taiwan, the Golden Horse Awards themselves have provoked Beijing’s ire.com, BitMEX and Bitfinex. The Hayes narrative Mixing two plot lines — one which traces all the most important crypto innovations to China, and the other which notes Hong Kong’s historical role as the entry point to communist China — Hayes argued: “Hong Kong’s friendly reorientation towards crypto portends China reasserting itself in the crypto capital markets. worth tens of millions of dollars for shipment to China.” According to Hayes, Hong Kong authorities cannot diverge too far from Beijing in their decisions, so opening up the crypto market amid the crackdown in the Mainland couldn’t be an autonomous act.

The reason behind Beijing’s benevolence to such a U-turn lies in the anxiety of Hong Kong losing its status as the principal Asian financial center. It has certainly faltered during the COVID-19 pandemic when the hardline lockdown policy, exercised in China and Hong Kong, caused an investment escape wave to the neighboring competitor, Singapore, which had eased its restrictions much earlier. is also on the list, with Washington accusing it of facilitating a shipment of petroleum to a foreign customer for the National Iranian Oil Company and its marketing arm. Another major factor behind China’s possible support of Hong Kong’s crypto liberalization, according to Hayes, is the former’s problem with a giant United States dollar trade proficit. Historically, like almost any nation in the world, China has been storing dollar income in assets like U.S.S.

Treasury bonds. But the example of Russia, whose foreign assets were blocked due to financial sanctions after an invasion of Ukraine, has worried Chinese officials. Hence, it is highly probable they would seek another type of asset in which to store their USD income. Reporting by Daphne Psaledakis; Editing by Andrea Ricci and Jon Boyle Our Standards:. Cryptocurrencies and related financial products might be the option. Reality check Speaking to Cointelegraph, David Lesperance, founder of Lesperance & Associates law firm, who has been dealing with Hong Kon and China-based clients for more than 30 years, doubted the possible interest of the Chinese government in opening up to crypto: “Rather, they are interested in having complete control over their population, including those who reside in HK.

This is demonstrated by such actions as social credit scoring, facial recognition, household registration, exit bans, zero COVID-19, etc.” Putting crypto aside, recent years have seen tightening political, cultural and economic control of China over Hong Kong with the national security law of 2020 sweeping the previous civil freedoms away, a change in school curricula to emphasize the Chinese history of the region and the ongoing integration of Mainland companies into the island’s juridical space. These signs of the shortening distance between the Mainland and Hong Kong might attract the attention of global regulators. As one banker to CNN recently, “The worst scenario is that the West would treat Hong Kong as the same as the Mainland China, and then Hong Kong would suffer the kind of sanctions.” The elephant in the room is China’s central bank digital currency (CBDC) project.

The rapid development of the digital yuan (also known as e-CNY) and the ban on crypto is hardly a coincidence. As Ariel Zetlin-Jones, associate professor of economics at Carnegie Mellon University’s Tepper School of Business, told Cointelegraph back in 2021, in the aftermath of the crackdown : “China clearly wants to promote the digital Yuan. Removing its competitors by banning crypto activities is one way to do this so it seems reasonable to consider this motivation as one rationale for their policies.” The digital yuan became the most actively transacted currency in a recent six-week m-Bridge pilot of cross-border payments among the digital currencies issued by central banks of China, Hong Kong, Thailand and the United Arab Emirates. As state-owned Chinese media after the experiment, “Hong Kong [is] poised to be a vibrant center for e-CNY’s use in international trade.

” Recent: Breaking down FTX’s bankruptcy: How it differs from other Chapter 11 cases Lesperance emphasized that the introduction of e-CNY and the continuing restrictions on the rest of the crypto, even when it comes to domestic miners, confirms Beijing’s drive to control the financial sphere in the first place: “Control over the financial lives and assets of the Chinese citizens is the ultimate control. This will be achieved when all transactions are done in e-yuan. Facilitating other crypto-currencies would undermine this move toward complete control.” .