Mainland China has not changed its anti-cryptocurrency stance, despite global adoption of the industry in Hong Kong. This was stated by Shan Zhong, head of the local insurer China Pacific Insurance (CPIС) in an interview with Cointelegraph.
He stressed that, despite the government’s backing, CPIC operates as a Hong Kong–based organization regulated by the local Securities and Futures Commission.
“The Hong Kong government is very keen to promote Web3 and cryptocurrency, but this does not imply any changes in the mainland’s regulations or the Chinese government’s attitude toward cryptocurrency,” Zhong explained.
The fourth-largest by объему revenue among the country’s insurers noted that Hong Kong’s rules allow them to invest in various markets, including digital assets, without violating the country’s main laws.
“Given that the government has cracked down hard on the financial sector, it’s hard to imagine it loosening control over the use of cryptocurrency among citizens,” added David Lesperance, founder of the law firm Lesperance & Associates.
According to Bloomberg, Hong Kong’s cryptocurrency initiatives are tacitly supported by Beijing officials. Major Chinese banks are also showing an interest in servicing affiliated companies in the jurisdiction. Former BitMEX CEO Arthur Hayes has floated China’s return to the crypto industry via Hong Kong.
Lesperance noted that the cryptocurrency market in the PRC is “still effectively closed.” This situation raises concerns for law enforcement because citizens could use Hong Kong exchanges to buy digital assets.
Zhong noted that trading platforms in Hong Kong adhere to a strict KYC policy designed to restrict access for investors from the mainland.
Earlier, CPIС, through a subsidiary launched in the jurisdiction two investment funds focused on the digital-asset industry.