• China’s stance on cryptocurrencies remains unchanged despite recent developments in Hong Kong.
• CPIC Investment Management, a China government-backed firm regulated as a Hong Kong entity, launched two cryptocurrency funds in April.
• Despite the progress made by the Hong Kong government to promote Web3 and crypto, the Chinese government has not softened its approach to regulating Bitcoin.
China’s Unaltered Crypto Stance
China has continued to maintain its anti-crypto stance for some time now, and is not expected to change its regulations anytime soon. Despite some Chinese state-affiliated banks opening bank accounts for cryptocurrency clients based in Hong Kong, this does not mean that China will soften or change its attitude towards regulating Bitcoin. This was stated by Chenggang Zhou, CEO of CPIC Investment Management — a China government-backed firm regulated as a Hong Kong entity — who recently launched two cryptocurrency funds in April.
CPIC Investment Management
The CEO emphasized that CPIC Investment Management operates as a Hong Kong entity regulated by the Securities and Futures Commission and is therefore compliant with local regulations. He commented that “Hong Kong regulations allow us to invest in different markets or asset classes or products like cryptocurrencies so we’re not breaching any regulations or laws”.
Opinion of Lesperance & Associates Founder David Lesperance
Lesperance & Associates founder David Lesperance also shared his opinion on how he doesn’t believe that China is loosening their control over cryptocurrency use among Chinese nationals due to it coming down hard on the financial sector.
Cryptocurrencies are Property
It was ruled recently by a court in Hong Kong that cryptocurrencies should be considered property under the existing legal framework there which would provide more legal certainty when dealing with digital assets such as Bitcoin and Ethereum.
Conclusion
To conclude, any developments regarding crypto adoption in Hong Kong do not indicate any changes regarding mainland regulatory regulations or the Chinese governments’ attitude towards crypto from an overall standpoint. The CEO of CPIC Investment Management believes that despite recent events taking place around cryptocurrencies, the Chinese government will remain anti-crypto for foreseeable future with no intention of changing their policy anytime soon.