Home » Hong Kong could be key for China’s crypto comeback: Arthur Hayes

Hong Kong could be key for China’s crypto comeback: Arthur Hayes

by admin

Former CEO of crypto derivatives giant BitMEX, Arthur Hayes believes the next crypto bull market will start when China returns to the market, and Hong Kong is playing a key role in the process. There is

In the October 26th blog Position In the article, entitled “The Comeback,” Hayes outlined his reasons for thinking about the Hong Kong government’s introduction announcement. Bill to Regulate Crypto This is a sign that China is looking to ease its return to the market. This may be because Hong Kong serves as “a proxy for China to interact with the world.”

“If China loves cryptocurrencies, the bull market will return. It will be a slow process, but the red shoots are emerging.”

Hayes argued that Hong Kong could become a proving ground for Beijing to experiment with the cryptocurrency market and serve as a hub for Chinese capital to enter the global cryptocurrency market.

“If these trends materialize as I envision, they will be a strong support for the next bull market.”

According to Hayes, Hong Kong’s “reorientation as a pro-crypto venue” is a fork in Beijing’s strategy to downgrade its status in a way that does not destabilize the domestic financial system.

Hong Kong ranked the most prepared country Widespread crypto adoption A study by Forex Suggest, published in July 2022, considered several factors such as the installation of crypto ATMs, regulations promoting crypto, and startup culture.

China, one of the world’s largest economies, is mostly hostile to the cryptocurrency industry. The country’s first ban dates back to 2013, when it banned banks from handling Bitcoin (Bitcoin)transaction.

Beijing is Crypto crackdown efforts In 2021, it carried out multiple regulatory operations to eradicate bitcoin mining from the country, deeming all crypto transactions illegal.

However, Hayes said, “China is not away from cryptocurrencies, it is just dormant.”

Related: Bitcoin ownership still legal in China despite ban, lawyer says

China did Resumption of BTC mining business September 2022 and Chainalysis I got it In the 2022 Global Crypto Adoption Index, China re-entered the top 10 this year after placing 13th in 2021.

The creators of the Global Crypto Adoption Index found the development “especially interesting” given the Chinese government’s crackdown on cryptocurrencies, but according to their data, “the ban is ineffective. Or the enforcement is lax,” he said.