China’s early crypto history was an epic one that didn’t last so long.
At that point, the country was emerging as the central point of the crypto industry.
Within a decade, the country observed the launching of giant exchanges like Binance Holdings Ltd. as well as the biggest Bitcoin mining firms.
However, Beijing’s crypto ban was a blow to the crypto space, as many thought it would damp the crypto exuberance.
On the other hand, Hong Kong has always been China’s window to the world.
According to Arthur Hayes, BitMEX co-founder, it is this deepwater port at the mouth of the Pearl River Delta that has been where China and the West met.
In a recent blog article, Hayes said the lack of a real economy lead Hong Kong’s financial system to be accomodating and more experimental when it came to establishing crypto capital companies.
But the aftermath of the ban in Mainland China led to a disruption in Hong Kong’s strategic enthusiasm with regard to the legal status of crypto, making the region a less friendly place driving companies to set camp elsewhere, including – Singapore, Dubai, and The Bahamas.
However, this is currently changing.
“Hong Kong’s friendly reorientation towards crypto portends China reasserting itself in the crypto capital markets. When Choyna loves crypto, the bull market will come back. It will be a slow process, but the red shoots are budding.”
Hayes opined that a drastic depreciation of the yuan, similar to that in 2015, could lead to the beginning of another epic bull market – Not his first opinion on this.
He added that China has just been silent but has not left crypto fully.
The current global geopolitical situation will eventually push the country to do something with the dollars that it earns every month from its exports to the world minus imports, cryptopotato revealed.
According to Hayes, the reorientation of Hong Kong as a pro-crypto location is a force in Beijing’s strategy to tackle China’s USD problem in a way that would not affect its internal financial system, courting foreign talent as it battles with rival finance hubs like Singapore.
Besides, Hong Kong has gotten a change of mind towards adopting stringent measures for its domestic crypto ecosystem.
Unlike the watchdogs in Mainland China, the director of licensing and head of the fintech unit of Hong Kong’s Securities and Futures Commission (SFC) recently confirmed that it is planning to enable direct crypto investments by retail investors.