Hong Kong is gearing up for a consultation process that could legalize retail crypto trading, and China seems to be tacitly supporting Hong Kong’s crypto ambitions. According to Bloomberg, representatives from China's Liaison Office have been frequent guests at crypto gatherings in Hong Kong.
In the Bloomberg report, Nick Chan, a National People’s Congress member and a cryptocurrency lawyer is quoted as saying, “As long as one doesn’t violate the bottom line, to not threaten financial stability in China, Hong Kong is free to explore its own pursuit under ‘One Country, Two Systems.’”
Hong Kong was formerly a British colony but was handed over to Chinese rule in 1997 with a “One Country, Two Systems” strategy.
What Happened?
On Monday, the Hong Kong Securities and Futures Commission (SFC) made its first move to allow retail crypto trading by launching a consultation process for the Virtual Asset Service Providers (VASPs) seeking licenses.
