China and in particular countries in the Asian zones will lead the next explosive wave of crypto growth and the move from Hong Kong to legalize crypto further amplifies this considering it’s proximity to China.
The China crypto narrative is a forced meme, apparently more liquidity has been added to the system in the last two months than in the last two years (3T Yuan/ 450B) yet major Chinese indices show no sign of change yet, yet you think they are bidding less accessible crypto? The only thing that makes sense is that crypto may rise because of the monetary policy change, if crypto is a hedge against monetary debasement.
People’s Bank of China (PBoC) is the world’s third-largest central bank, with assets of around $6 trillion, playing a key role in global liquidity. The opening of Hong Kong as a crypto hub combined with monetary policy in China could thus be a catalyst for a new Bitcoin bull market.
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Hong Kong as a crypto hub is a development that will have a big positive impact on the crypto market. China Reopening plus Hong Kong as crypto Hub, It is not a coincidence they injected over $100 Billion Liquidity. Last Friday, $92bn USD (net) was injected to bring down borrowing rates and make cash easier to come by.
Crypto exchanges in Hong Kong can obtain a Virtual Asset Service Providers (VASP) license to legally operate in the Chinese special economic zone. Hong Kong Securities and Futures Commission released a statement outlining its plan to allow not only institutional investors but also retail investors to trade cryptocurrencies such as Bitcoin and Ethereum.
“As long as you don’t violate the basic rule of not jeopardizing financial stability in China, Hong Kong is free to pursue its own goal under the slogan of ‘one country, two systems,” Nick Chan, a member of the National People’s Congress and digital asset lawyer.
Hong Kong is the fourth largest financial center in the world, after New York, London and Singapore, making it one of the largest capital hubs in the world. Hong Kong is considered the first option for wealthy mainland Chinese to withdraw their capital from the isolated country. As per an estimate, Chinese wealthy move close to $500 billion to Hong Kong to gain access to special economic zones and the global financial system.
Andrew Kang, Investment Lead at PleasrDAO said “A lot of people in crypto that joined in the last few years have never witnessed the power of a China pump since China whales were mostly net sellers from late 2020 to 2022. They only know the power of Korean pumps.”
United States regulatory activities on the Crypto Industry is starting to take a back seat due to the Hong Kong/China crypto adoption narratives. The USA will be forced to adapt and follow China or they risk being left behind. China just said “One Country, Two Systems” a reversal from their prior anti-crypto position while the USA does the opposite, moving to crush Crypto. I love this quote from China: “As long as it doesn’t threaten financial stability, Hong Kong is free to explore crypto.”
