Hong Kong is taking pro-active measures to promote cryptocurrency businesses in its jurisdiction, with Beijing reportedly subtly backing the initiatives. According to a report published by Bloomberg, the city-state is getting support from the Chinese central government to implement a more welcoming approach to digital assets.
The news comes after months of speculation that Beijing was considering clamping down on the cryptocurrency industry in Hong Kong. Hong Kong’s Securities and Futures Commission (SFC) had been looking into the crypto-assets market, and some observers were expecting a more restrictive approach.
However, the report from Bloomberg signals a change in China’s stance on the matter. According to sources close to the matter, the Chinese government has given the go-ahead for Hong Kong to take a more open stance on cryptocurrencies. The report suggests that the local regulator will be allowed to let some crypto-assets trade under its supervision.
The crypto industry will likely welcome the move, which has seen several exchanges leave Hong Kong in recent months. It also comes at a time when the Chinese government is looking to promote blockchain technology, which is the underlying technology behind cryptocurrencies.
The report from Bloomberg did not provide any details on how the SFC will oversee the cryptocurrency sector. However, the news is likely to be seen as a positive sign for the industry. It could pave the way for a more open approach to cryptocurrencies and provide a boost to the sector in Hong Kong.
