Hong Kong One Step Ahead of China on Cryptocurrencies

A small initial introduction

Hello to all lovers of the network powered by Hive Blockchain, im am starting this post with this little introduction to avoid possible misunderstandings or conflicts regarding the account being completely new. This is due to the idea that my main account whose from this date will be reserved only for content related to the HiveGaming community, that is in addition to participation in the Brazilian community HiveBr. Otherwise all my involvement and engagement with issues related to financial and LeoFinance will be as author this account, this will help me separate the content intended for the target audience since many readers of the old account are players of Splinterlands and enjoy digital games, this can be frustrating for those who follow me read about finance and have nothing related to Splinterlands since I no longer interested in the game. Thanks for your time and keep reading.

Hong Kong breakthrough in restriction

As it is not news that China had implemented significant restrictions on cryptocurrency activities, including temporary bans on Exchanges and restrictions on cryptocurrency trading to operate in Chinese territory, however recently Hong Kong which is an autonomous territory that lies to the southwest of China has released cryptocurrency trading to its population, Hong Kong is a special administrative region of China, with a high degree of autonomy from the mainland, Hong Kong maintained a separate economic and legal system with its own financial market and a more liberal approach towards Cryptocurrency compared to the mainland as it was restricted to institutional, with this Hong Kong ends up attracting cryptocurrency companies to the region increasing its territorial dominance while the rest of China keeps pushing it away.

The release of retail cryptocurrency investors was released by the Hong Kong Securities and Futures Commission (SFC) which allows Hong Kong residents to trade Bitcoin, Ethereum and some other currencies, it is said to apply only to major cryptocurrencies, i believe when they say major cryptocurrencies we can then only have those listed on licensed Exchanges and with a Capital Market close to those big ones mentioned above like maybe Cardano and XRP, in the future regulators will establish more precise information about permissions, I cited the likely acceptance of the XRP cryptocurrency due to the fact that in conjunction with this release statement in Hong Kong it was also announced through Ripple which is the token owning company whose joined the Hong Kong Monetary Authority (HKMA) and BitMEX announced BitMEX Hong Kong, a dedicated service to comply with Hong Kong Virtual Asset Service Provider (VASP) regime.

I would venture to say that perhaps we could also have news for Chinese cryptocurrencies giving a growth opportunity in the country? Perhaps this is interesting to see some possible possibilities for investment in the Short and Medium Term aiming only the appreciation of the token and then its sale, im saying this in the short to medium term because some cryptocurrencies related to the known country tend to have its main functionality reserved for its region, an example is the ACH token or AlchemyPay that will facilitate payment with cryptocurrencies for shopkeepers and retailers in China thus increasing the reach of cryptocurrencies with merchants.

Why is China continuing with the restriction?

The Chinese government's attitude towards cryptocurrencies is restricted for a number of reasons, such as capital control, fraud prevention, anti-money laundering efforts and protecting investors' interests. China controls its economy and adheres to strict Banking Regulations as the government wants to maintain control over the economy and avoid the potential undue volatility caused by cryptocurrencies. In addition there are concerns that cryptocurrency transactions may contribute to illegal financing such as money laundering and criminal activity. I believe another point to think about this is the Privacy policy that the country has, and since some cryptocurrencies have their completely anonymous secrecy this would be concerning for the government.

Maybe it is possible to happen something that happened with Saudi Arabia? For those who do not have memories Saudi Arabia adopted a conservative position against cryptocurrencies quite restricted, according to the regulations of the country's central bank the sale of cryptocurrencies was considered something illegal, however we have a big breakthrough as even a large fund in the country investing in Bitcoin.

Conclusion

We still don't know in fact if this Hong Kong proposal will go ahead or we may find ourselves with a type of attracting investors only in global cryptocurrencies like Bitcoin and Ethereum, this would not be totally a bad thing, but it would limit the Exchanges that are moving to Southwest China to try the regulation and end up finding themselves with the blockage of scope with only these assets allowed, in my opinion if this goes right Hong Kong can become much ahead of central China, this due to the idea of what happened in Russia's fight against the Ukrainian territory, we get a great example of what happens when the country is in confrontation and the Central Banks of the country can not meet the requests for withdrawals of all citizens, this would not be a problem if the assets were allocated in cryptocurrencies or also Stable Coins so as not to have a volatility so great if compared to Altcoins.

Maybe I'm not the best person to have an opinion about this subject so relative, I say this due to the fact that I live in Brazil, our regulation related to cryptocurrencies is almost null, and it surprises me that we still don't have any token relevant to the government or something like what happened with Ecuador.

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