China Maintains Its Anti-Crypto Stance Despite Developments in Hong Kong, Says CPIC Investment Management CEO Chenggang Zhou
According to CPIC Investment Management CEO Chenggang Zhou, Hong Kong’s efforts to promote Web3 and cryptocurrencies did not cause China to soften its approach to regulating Bitcoin anytime soon. Despite Hong Kong’s progress in cryptocurrency adoption, mainland China continues to maintain its anti-crypto stance in terms of local regulations.
China has upheld its anti-crypto position for a long time, even prior to banning cryptocurrencies entirely in September 2021, noted Zhou. He emphasized that he does not anticipate the local government changing its crypto policies in the near future.
CPIC Investment Management is a China government-backed business managed as a Hong Kong entity that launched two cryptocurrency funds in April. Some state-affiliated banks in China have increasingly opened accounts to serve crypto clients in Hong Kong.
“We got involved in crypto because Hong Kong regulations allow us to do that. But it’s in no way any indication of the China government’s attitude or policy, or change of policy,” the CEO said.
Despite backing from the China government, CPIC Investment Management operates as a Hong Kong entity regulated by the Securities and Futures Commission. Hong Kong regulations enable the firm to invest in various markets, asset classes, or products such as cryptocurrencies without breaking laws or regulations.
However, strict know-your-customer policies implemented by crypto exchanges in Hong Kong limit mainland Chinese investors from trading in licensed crypto exchanges located in Hong Kong, according to Zhou. He also stated that he did not anticipate any licensed crypto exchanges in Hong Kong accepting onshore mainland citizens to trade on the exchanges.
In conclusion, China’s reforms in Hong Kong do not signify any changes in mainland regulatory regulations or the Chinese government’s stance towards cryptocurrencies. As a result, Chinese nationals are unlikely to be able to use Hong Kong exchanges to get money out of China. Chinese authorities will likely attempt to prevent any such leakage.
According to https://cointelegraph.com/news/china-s-crypto-stance-unchanged-by-moves-in-hong-kong-says-exec
The material in this article is written on the basis of another article.