Bloomberg: Hong Kong’s cryptocurrency policy may get the tacit support of Beijing

On February 21, Bloomberg reported that the official representatives of the Liaison Office of the Central People’s Government in the Hong Kong Special Administrative Region are frequent guests of the Hong Kong cryptocurrency gathering. They will check the development of the situation and request a report, and in some cases will follow up by telephone. Bloomberg said that the mainland government may support the region’s negotiation process for the legalization of retail encrypted transactions.

Interpretation of this information:

The recent report from Bloomberg has shed light on the involvement of the Liaison Office of the Central People’s Government in the Hong Kong Special Administrative Region in the cryptocurrency industry. According to the report, the official representatives of the Liaison Office are regular attendees at the Hong Kong cryptocurrency gathering, where they observe the development of the industry and request reports. It has been suggested that in some cases, they also follow up with phone calls to stay updated on the situation.

This report is significant as it indicates that the mainland Chinese government is keeping a close eye on the cryptocurrency industry in Hong Kong. While the Chinese government has been known for its hard-line stance on cryptocurrencies in the past, this report seems to suggest a softening approach towards the industry. The report also implies that the Chinese government may support the process of legalizing retail encrypted transactions in the Hong Kong Special Administrative Region.

Despite the increasing popularity of cryptocurrencies worldwide, the People’s Bank of China has previously expressed concerns about the potential risks associated with unregulated currencies. It has taken various measures to regulate the industry, including a ban on initial coin offerings (ICOs) and restrictions on cryptocurrency trading. However, it seems that the Hong Kong Special Administrative Region may have a different approach, and the Chinese government may be willing to accommodate their policies towards cryptocurrency to suit the needs of the region.

It is worth noting that while the report indicates a potential shift in the Chinese government’s stance on cryptocurrencies, it does not definitively confirm it. It remains to be seen if Chinese authorities will take more significant steps towards regulating the industry in Hong Kong or if they will maintain their current hard-line stance.