China Considers New Bans on Cryptocurrencies
China, recognized for its stringent prohibitions on Bitcoin (BTC) and other cryptocurrencies, is contemplating further restrictions.
As reported by the Chinese local news agency Caixin, the government plans to limit the cryptocurrency and stablecoin activities of internet giants, central state enterprises, and state financial institution branches operating in Hong Kong.
These new bans are intended to compel these entities to focus on advancing the real economy. Beijing has instructed them to prioritize real economic development over ventures in virtual assets.
According to Caixin, the Chinese government has barred significant state-owned technology firms in Hong Kong from participating in the cryptocurrency industry.
- “Large Chinese internet companies may withdraw from cryptocurrency-related businesses (in Hong Kong).”
“Hong Kong branches of many central banks and Chinese banks may also be excluded from ongoing applications for Hong Kong stablecoin licenses.”
It is noteworthy that Hong Kong initiated the full-scale regulation of stablecoins last month.
Additionally, China’s largest state-owned bank, the Industrial and Commercial Bank of China (ICBC), has also sought a stablecoin issuance license from Hong Kong authorities through its Hong Kong branch.
This is not investment advice!
