"China, restricts cryptocurrency businesses in Hong Kong…targeting domestic companies"
Summary
- The Chinese government is reportedly reviewing measures to restrict its domestic companies' cryptocurrency businesses in Hong Kong.
- It said state-owned enterprises and major internet companies may withdraw from Hong Kong stablecoin businesses or be excluded from license applications.
- It said related businesses of Chinese state-owned banks could also be affected by Hong Kong's adoption of stablecoins.
China is restricting its domestic companies' cryptocurrency businesses in Hong Kong.
On the 11th, according to Chinese financial media Caixin, the Chinese government is reviewing measures to restrict its state-owned enterprises, financial institutions, and major internet companies from promoting cryptocurrency businesses such as stablecoins in Hong Kong. Caixin said, "Major Chinese internet companies may withdraw from (Hong Kong) cryptocurrency-related businesses," and "state-owned enterprises' Hong Kong subsidiaries could also be excluded from ongoing stablecoin license applications."
Earlier, Hong Kong began full-scale adoption of stablecoins last month by enacting a stablecoin ordinance. It was reported that the Industrial and Commercial Bank of China (ICBC), China's largest state-owned bank, also applied to Hong Kong authorities for a stablecoin issuance license through its Hong Kong branch.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul
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