I am not sure how they are connected or disconnected from each other but Hong Kong and China seems clearly on different end when it comes to the acceptance of Crypto related legalities. Though HK is part of China and has been titles the Administrative Region for Republic of China; it holds major importance in the country. History states that all of the rules and regulations are ideally similar in both regions but when it comes down to the crypto things are weird.
For example, various crypto companies are opening their bank accounts in the Hong Kong even though their basis is in the China and that's because they have more favorable conditions as compared to the China.
“The Hong Kong government tries very hard to promote Web3 and crypto, but it doesn’t imply any changes in mainland regulatory regulations or the Chinese government’s attitude toward crypto,” Zhou said in an interview with Cointelegraph on May 5.
On the other hand China has been very restrictive about the Crypto currencies since September 2021.
This is one of the major reason various companies are trying their expansion or even the shifting of offices to HK.
The lawyer also noted that the crypto market in mainland China is “still effectively shut down.” That raises enforcement concerns about Chinese clients getting a chance to use Hong Kong exchanges to get money out of China. “Certainly, the authorities will try to stop this leakage,” Lesperance noted.
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China’s crypto stance unchanged by moves in Hong Kong, says execDespite Hong Kong steadily progressing with cryptocurrency adoption, mainland China has not changed its anti-crypto stance in terms of local regulations. Some Chinese state-affiliated banks have increasingly opened bank accounts to serve crypto clients in Hong Kong. CPIC Investment Management — a China government-backed firm regulated as a Hong Kong entity — even launched two cryptocurrency funds in April.
All these developments don’t mean that China has softened or will soften its approach to regulating Bitcoin BTC anytime soon, according to CPIC Investment Management CEO Chenggang Zhou.
“The Hong Kong government tries very hard to promote Web3 and crypto, but it doesn’t imply any changes in mainland regulatory regulations or the Chinese government’s attitude toward crypto,” Zhou said in an interview with Cointelegraph on May 5.
Zhou emphasized that despite China government’s backing, CPIC Investment Management operates as a Hong Kong entity regulated by the Securities and Futures Commission.
“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,” the CEO said. He added:
“We got involved in crypto because Hong Kong regulations allow us to do that. But it’s in no way any indication of the China government’s attitude or policy, or change of policy.”
The one question arise, how they are so different when it comes to the regulations. How are they keeping their regulatory framework so opposite if they are having geographical importance of administration on one another's land!
