- Despite China’s Ban, Crypto Firms are making their way ahead
- Crypto currency demand remains strong in China
To begin with, the Chinese government has imposed a ban on crypto, but it doesn’t seem to be a significant step as the citizens of China are finding innovative ways to deal with the digital cryptocurrency market. Despite China’s ban on cryptocurrency exchange, the demand for these assets in the region seems to be unaffected. As the world’s second most populous country, China’s unwavering interest in cryptocurrency raises questions about the ban’s effectiveness and possible changes in government policy.
Despite China’s Ban, Crypto Firms are making their way ahead
Even though the Chinese government banned cryptocurrency operations, in September 2021, the demand for these digital assets in the region remains unshaken, which leads to the development of crypto firms making their way ahead in the Republic of China, specifically in Hong Kong. While China may have taken a hard line on crypto, Global Firms have found a safe haven in Hong Kong, China’s ‘Special Administrative Region,’ (SAR) under the “One Country, Two Systems” framework. Macau is the other special administrative region and is also a promising destination for crypto trading.
The government’s crypto-friendly policies and immersive regulations have helped Hong Kong emerge as one of Asia’s leading crypto markets. The government is trying to enact its own laws. Hong Kong financial regulators asked the public for opinions on regulations on the basis of existing laws in different countries.
In addition to this, the government is also trying to incorporate a licensing regime for crypto service providers. The Hong Kong Monetary Authority (HKMA) has even asked banks not to shy away from providing services to crypto firms. The government is trying to make the regulations hard and strict so as to prevent scandals and bankruptcies.
The Hong Kong government is also focusing on the policies related to crypto currency transactions so as to provide growth to their economy.
However, China’s CBDC plans are working out well. The pilot programme of the Digital Renminbi was successful, with multiple top tier cities adopting the currency and over 100 million wallets being adopted.
Cryptocurrency demand remains strong in China
According to a report,
the value of investments in digital currencies in China amounted to over 1.5 billion yuan, As of May 24,2022. Before the government imposed a ban on the cryptocurrency market, investment in digital currencies was valued at around 14 billion yuan at their peak in 2019.
This shows that somehow the scenario has changed after the ban was imposed. The value of investment in the year 2022 signifies that the demand for crypto currency has decreased.
The cryptocurrency market has flourished over the years as Chinese citizens are finding innovative ways to engage with digital assets. Cryptocurrency and digital assets will have a boom period in the future, even if it has got banned in some countries.
Disclaimer-
This information here provided is for general purpose only. All information is provided in good faith.
