Cryptocurrency

Key for China’s crypto comeback is Hong Kong 

  • Next crypto bull run will be tied to when China embraces the crypto market – Hayes
  • Arthur Hayes is the former CEO of BitMEX
  • Hong Kong may become the testing ground for Beijing to experiment with crypto

Former CEO of BitMEX, Arthur Hayes, is of the opinion that the next crypto bull run will begin when China returns to the market, and Hong Kong has a crucial role to play in this process.

Hayes explained why he believes the Hong Kong government’s announcement about introducing a bill to regulate cryptocurrency is evidence that China is attempting to ease back into the market in his blog post titled “Comeback” on October 26.

This could be due to the fact that Hong Kong serves as China’s proxy through which the world interacts. The bull market will return when China is in love with cryptocurrency. Although the process will be slow, there are already signs of growth.

BTC Price at the time of writing – $20,501.28

Hayes argued that Hong Kong could serve as Beijing’s testing ground for experimenting with cryptocurrency markets and as a hub for Chinese capital to enter global cryptocurrency markets. These flows will be a strong supporting pillar of the next bull market if they actually materialize in the way he imagines.

Hayes asserts that Beijing’s strategy to reduce its position in a manner that won’t destabilize its internal financial system includes Hong Kong’s reorientation as a pro-crypto location.

A study conducted by Forex Suggest and released in July 2022 ranked Hong Kong as the nation that was best prepared for the widespread adoption of cryptocurrencies.It took into account crypto ATM installations, crypto-friendly regulations, and startup culture.

Despite having one of the world’s largest economies, China has largely resisted the cryptocurrency industry. In 2013, the country imposed its first ban, prohibiting banks from handling Bitcoin transactions.

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China resumed BTC mining operations in September 2022

In 2021, Beijing intensified its efforts to crack down on cryptocurrencies by conducting numerous regulatory actions to ban Bitcoin mining from the country and declaring that all cryptocurrencies were illegal.

However, according to Hayes, China has not abandoned crypto; rather, it has simply been dormant. In September 2022, China resumed BTC mining, and Chainalysis noted in its 2022 Global Crypto Adoption Index that China re-entered the top ten this year after finishing 13th in 2021.

Despite the fact that their data indicate that the ban has either been ineffective or loosely enforced, the Global Crypto Adoption Index’s authors stated that they found the development to be “especially interesting” in light of the Chinese government’s crackdown on cryptocurrency.

Nancy J. Allen
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