Arthur Hayes envisions China’s return to the crypto industry via Hong Kong

Former BitMEX chief executive Arthur Hayes has described a possible return of China to the digital-asset industry with the help of Hong Kong.

«Comeback» is an essay about how #HongKong retakes its position as the #crypto capital markets hub of the world!!! And I add another pillar to the upcoming $BTC BOOOLLL Market.https://t.co/1zqaZQFEBp pic.twitter.com/rM5FjodoYZ

— Arthur Hayes (@CryptoHayes) October 25, 2022

He believes media reports about plans by the Hong Kong Securities and Futures Commission (SFC) to relax the requirements for trading cryptocurrencies confirm China\’s efforts to return to the digital assets market.

According to Elizabeth Wong, head of the SFC\’s FinTech department, should the bill be enacted retail investors would be able to “directly invest in virtual assets”.

Hayes called Hong Kong “a trusted intermediary”, through which China interacts with the rest of the world. In his view, Beijing\’s repositioning of the SAR is part of a strategy to ease its stance toward cryptocurrencies.

«When China falls in love with cryptocurrency, the bull market will return. It will be a slow process, but the shoots are already blooming. […] If these streams do materialize as I envisage, they will provide a strong pillar for the next bull market», — Hayes wrote.

Meanwhile, the PRC is successfully rolling out the digital yuan. According to the People’s Bank of China, by the end of summer 2022 the cumulative value of e-CNY transactions reached 100.04 billion yuan (~$14 billion) .

Earlier in October, researchers from a Chinese state institution proposed the idea of a pan-Asian digital currency to reduce regional economies\’ dependence on the US dollar.

Follow ForkLog\’s bitcoin news on our Telegram — cryptocurrency news, prices and analysis.