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- China may reassess its stance on crypto, HashKey Capital CEO Chao Deng Told CNBC
- He says “Hong Kong’s crypto experiment” may influence mainland China’s stance
- New Trump administration crypto initiatives also force to reassess other nations’ crypto stance
China may reassess its stance on crypto, HashKey Capital CEO Chao Deng told CNBC, because “Hong Kong’s crypto experiment” and the new Trump administration’s multiple crypto initiatives force other countries to reconsider their approach.
More About HashKey Capital CEO Chao Deng’s Assumption on Mainland China’s Potential Shift
HashKey Capital CEO Chao Deng shared a rather optimistic view on how mainland China’s stance on cryptocurrencies may change, and he sees several reasons for that.
First, he points out that China’s experiment is “one country two systems,” where Hong Kong has a significant degree of economic autonomy. This has created a favorable crypto environment, and Hong Kong has become one of the key crypto hubs in Asia. Also, HashKey Capital has recently obtained a Type 1 license from Hong Kong’s Securities and Futures Commission, enabling it to provide crypto-backed brokerage services.
Chao Deng said:
“If it’s successful, there is a possibility that the mainland government will reconsider its stance.”
Additionally, the idea that Donald Trump’s new administration, along with its pro-crypto initiatives like better regulation and the creation of a crypto reserve, could cause other economies to follow it – is starting to be heard from others as well, and Chao Deng also notes this:
“With Trump and the new administration’s support, the regulatory framework will be clearer. Institutions and high-net-worth individuals are now more inclined to enter the Web3 and crypto space in a regulated, compliant manner.”
Thus, we could potentially see a sharp reversal, with mainland China returning to being a key player in mining and buying Bitcoin and other key cryptocurrencies. Recall that China mined up to 80% of cryptocurrencies before the ban on mining in 2017, and even more tightening for the entire crypto sector in 2021.
Conclusion
Note that this is only an assumption and not a guarantee, but from one of the very important players in the industry. Also, it would be a clear continuation of the “one country two systems,” because this experiment should be summed up and the most efficient system should be chosen. And in general, such a step seems objectively required for political and economic dominance.
Stay tuned for updates, be adaptive in the rapidly evolving financial and crypto landscape, and keep your strategy grounded, balanced, and beneficial.
