In a document published this Thursday (27), the Hong Kong Monetary Authority has asked the banking industry to provide support to the cryptocurrency industry, showing renewed interest in this market.
Binance founder and CEO Changpeng Zhao commented on the matter this Friday (28). Asked if China was not against cryptocurrencies, the executive stated so “Things change”.
Besides China, another country that seems to have changed a lot lately is the US. Once best remembered for welcoming miners expelled from China, the US country is now quietly trying to ban cryptocurrencies.
Also in February, Zhao advised that serious projects leave the US after local regulators nearly killed his stablecoin, Binance USD (BUSD).
While the US wants to move away from the crypto sector, Hong Kong seems interested
While several companies left Hong Kong in 2021 over hostile regulations, the government changed its mind about the industry the following year in 2022, recognizing that cryptocurrencies are here to stay.
As far back as February this year, the country was preparing to release trading in Bitcoin and other cryptocurrencies, which was another catalyst for the market’s big boom this year.
Now another step has been taken towards this change. The note published by the country’s Central Bank, also known as the Hong Kong Monetary Authority, asks banks to allow access to the crypto industry.
“To address the rapidly evolving technology landscape, accredited institutions must take a forward-looking approach and seek to strengthen their understanding of new and developing industries”points to the statement. “As well as related market developments, which will help licensed institutions differentiate between individual clients with different risk characteristics.”
“In particular, authorized institutions should make efforts to support Virtual Asset Service Providers (VASPs) licensed and regulated by the Securities and Futures Commission (SFC) with their legitimate need for bank accounts in Hong Kong.”
That is, while the US continues to choke the crypto industry through, say, traditional banks, Hong Kong is operating in the opposite way.
Binance CEO comments on the matter
Born in China, Changpeng Zhao moved to Canada at a young age and always refers to himself as a Canadian citizen. However, Binance’s CEO was eager to comment on the matter regarding his home country.
Hong Kong’s central bank asked banks to provide services to cryptocurrency companies before they were licensed.
“I do not understand it anymore. Wasn’t China against cryptocurrencies?”asked a follower.
“Things change”replied Zhao.
Things change
— CZ 🔶 Binance (@cz_binance) April 28, 2023
Ultimately, many believe that China’s return will cause Bitcoin to hit a new high. However, other big names in the industry doubt that Hong Kong’s policies will be replicated in other parts of the country.
Commenting on this relationship, BitMex founder Arthur Hayes stated that “They will allow certain things in Hong Kong, but they will not allow it [essas mesmas coisas] in mainland China.” In any case, he noted that this will inject liquidity into the market, that is, it will be something beneficial for Bitcoin investors.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
