• China’s crypto stance has not been affected by the increasing adoption of cryptocurrency in Hong Kong.
• CPIC Investment Management CEO Chenggang Zhou stated that mainland China is still opposed to Bitcoin, despite a government-backed firm launching two cryptocurrency funds in April.
• David Lesperance commented that the Chinese government is unlikely to relax its control over the use of crypto.
China Maintains Anti-Crypto Stance
China has not changed its stance on cryptocurrency, despite increasing adoption of digital assets in Hong Kong. CPIC Investment Management CEO Chenggang Zhou stated that developments in Hong Kong do not imply any changes or relaxation of regulation in mainland China.
CPIC Launches Crypto Funds
CPIC Investment Management — a China government-backed firm regulated as a Hong Kong entity — launched two cryptocurrency funds in April 2021. Despite this, Zhou emphasized that the company operates within the regulations set out by the Securities and Futures Commission of Hong Kong.
Chinese Government Tightening Control
David Lesperance from Lesperance & Associates commented that it is unlikely for the Chinese government to relax its control over crypto usage due to their ongoing efforts to strengthen financial regulation.
Hong Kong’s Crypto Attitude
The Hong Kong government has been actively encouraging Web3 and crypto adoption with state-affiliated banks increasingly opening bank accounts to serve crypto clients. This stands contrast with mainland China’s attitude towards digital assets and shows how the country is willing to explore blockchain technology while maintaining its anti-crypto stance at home.
No Change In Sight For Mainland China
Chenggang Zhou does not anticipate any changes from Mainland China in terms of local regulations regarding cryptocurrency anytime soon; “The Chinese government’s attitude toward crypto” remains unchanged he said, adding: “We got involved in crypto because Hong Kong regulations allow us to do that.“