Former BitMEX CEO Arthur Hayes said: medium article Titled “Comeback”.
We took a deep dive into the complex relationship between China and Hong Kong and how he hopes Hong Kong can regain its status as a cryptocurrency hub. If so, what does this mean for the wider crypto market?
China’s anti-crypto stance
China has a long history of cracking down on cryptocurrencies, with Beijing frequently announcing anti-cryptocurrency measures that local residents evaded.
Some speculate that Tether’s rise in popularity may be due to the cessation of exchanges between cryptocurrencies and the renminbi. Hayes alluded to this in a Medium post, writing:
“Cryptocurrency exchanges needed a way to raise funds in US dollars without touching the banking system. Similarly, the Chinese needed a way to send dollars around the world without going through banks. ”
However, things took a decisive turn in May 2021 as authorities reiterated previous trading bans and barred financial institutions from handling digital assets.
June 2021 saw a ban on cryptocurrency mining, leading to a massive exodus to more accepting jurisdictions for miners over the next few months.
In September 2021, the final fatal blow came when the People’s Bank of China (PBoC) outlawed cryptocurrency trading and banned exchanges from serving Chinese citizens.
People’s Bank of China news He spoke of the need to reduce illegal and criminal activity resulting from digital asset transactions in order to maintain national security and social stability.
“Cryptocurrency trading hype activities are on the rise, disrupting the economic and financial order, facilitating illegal and criminal activities such as gambling, illegal financing, fraud, pyramid schemes, money laundering, and destroying people’s property. seriously jeopardize the safety of“
Hayes said the mainland’s crackdown on cryptocurrencies has made Hong Kong an “unfriendly place” for digital assets. Beijing’s zero-corona policy has accelerated the problem as its cryptocurrency hub status dwindles.
Hong Kong Hopes To Reclaim Crypto Hub Status
Nevertheless, according to Hayes, “Hong Kong wants the cryptocurrency back.” And, as he said in a Medium post, “Hong Kong is China’s proxy for interacting with the world.”
“Hong Kong (a deep-sea port at the mouth of the Pearl River Delta) has always been China’s window to the world. ,Hong Kong has historically been the place where China and the West meet.”
October 17th, Elizabeth WongThe head of fintech at the Securities and Futures Commission said regulators are considering allowing retail traders to invest directly in cryptocurrencies.
Existing rules only allow professional traders to invest in cryptocurrencies. This is defined as an individual with a portfolio of at least HK$8 million (US$1.02 million).
If enacted, retail participation in Hong Kong would make a clear difference to mainland policy on this issue. Thus, it demonstrates the “one country, two systems” policy often promoted by Hong Kong lawmakers.
Despite Hong Kong’s multi-party democratic political system, reforms in Beijing’s legislative elections anti-Chinese candidate to hold the highest position. So it is no exaggeration to say that what is happening in Hong Kong must first be approved by China.
Given its proxy relationship with Hong Kong, Hayes ponders whether this indicates that China is seeking to regain the crypto dominance it gave up last year.
If so, the impact on the broader crypto market could be far-reaching in terms of catalyzing bullishness.
“When Choina [sic] I love cryptocurrencies and the bull market will be back. It will be a slow process, but red buds are emerging. “