Beijing Backs Hong Kong’s Vision as a Crypto Hub

22 Feb 2023

Hong Kong rolled out the red carpet for crypto businesses to help revitalize the embattled financial hub. Signs are now emerging the push has under-the-radar backing from Beijing, providing impetus for mainland Chinese firms to return, Reuters reports.

Representatives from China’s Liaison Office and other officials have been frequent guests at the city’s crypto gatherings over the past months, swapping business cards and WeChat details, said people familiar with the matter, who asked not to be named discussing private information.

On Feb. 20, Hong Kong’s Securities and Futures Commission officially released a statement outlining its plan to allow retail investors to trade cryptocurrencies like Bitcoin and Ethereum. However, only exchanges that are licensed by the agency will be able to facilitate the same. Investor protection is one of the key focus areas of the SFC, and exchanges will have to be wary of the exposure limits, risk profiles, etc.