Reported by Bloomberg, Hong Kong's efforts to become a crypto hub have received an impetus from Beijing. Officials from China's Liaison Office have been attending Hong Kong's crypto events over the past months and are said to be keen on using the city as a testing ground for digital assets while keeping a tight rein on such activity on the mainland.
This has provided the under-the-radar backing for mainland Chinese firms to return to Hong Kong. In October, Hong Kong had rolled out the red carpet for crypto businesses to help revive its embattled financial hub. Mainland and overseas firms are taking the cue, pushing to register their businesses and planning to return to the Chinese territory 15 months after Beijing slapped a ban on the industry and forced many to set up shop abroad.
However, there is little indication that Beijing will relax its own ban on crypto. There will be no U-turn on China's crypto policy, said He Yihan, founder and CEO of state-backed blockchain firm Red Date Technology.
The Liaison Office of the Central People's Government in the Hong Kong Special Administrative Region is the agency that represents the Chinese Central People's Government in Hong Kong.
Policy and Regulation
