Summary of the Article
- Recent crypto developments in Hong Kong do not mean that China has softened its anti-crypto stance.
- CPIC Investment Management, a China government-backed firm regulated as a Hong Kong entity, launched two cryptocurrency funds in April.
- The CEO of CPIC Investment Management stated that despite the launch of the funds, it is not an indication of the Chinese government’s attitude or policy towards crypto changing.
China’s Crypto Stance Unchanged by Moves in Hong Kong
Despite increasing crypto adoption in Hong Kong, mainland China has maintained its stance on regulating Bitcoin (BTC). The Chief Executive Officer (CEO) of CPIC Investment Management, Chenggang Zhou, emphasized that despite being backed by the Chinese government, their operations are regulated by the Securities and Futures Commission as a Hong Kong entity. He further clarified that their involvement in cryptocurrencies is only allowed due to regulations set by the Hong Kong government. However, this does not imply any change in mainland regulatory regulations or attitude towards cryptocurrency.
Previous Anti-Crypto Stance by China
China had already adopted an anti-crypto stance long before banning it completely in September 2021. As such, Zhou does not expect any changes to be made to local regulations on cryptocurrencies anytime soon. David Lesperance from Lesperance & Associates also echoed his thoughts and said that given how hard the Chinese government is coming down on financials sectors it is unlikely they will loosen control over Chinese nationals using cryptocurrency.
Launching Cryptocurrency Funds
CPIC Investment Management launched two cryptocurrency funds back in April which may lead some people to believe that attitudes are changing regarding cryptocurrencies. However, this isn’t necessarily true as these movements have been made possible due to regulations set by the local government of Hong Kong and aren’t reflective of China’s overall attitude towards crypto assets.