USA to cryptocurrencies It ended negative discrimination against people with Trump and is looking for ways to benefit from innovation in this area. Although China legitimized access to crypto via Hong Kong during the Biden era, today it blocked the steps taken with dreams of the “future of payment services”. Companies had to step back.
China and Cryptocurrencies
Recently, Ant Group and JD stablecoin We talked about the desire to extract. They declared their intention in this regard and were encouraged by the concrete steps taken by giants such as PayPal. The world’s largest payment service companies have begun integrating with stablecoins. PYUSD (PayPal’s stablecoin) already has over $2.7 billion in circulating supply. The total market value of all stablecoins reached 317 billion dollars. The 1 trillion dollar threshold is expected to be quickly exceeded.
In other words, what companies operating in the field of financial technology need to do is to keep up with this “innovation” and get a slice of the cake. It’s not that easy for Chinese companies. In their latest order, the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) said “do not do this” to companies planning to launch stablecoins.
China-based companies are developing both stablecoins and tokenization started to take concrete steps in this regard.
Hong Kong and Crypto
If you remember in August, we mentioned that Hong Kong had started accepting applications for stablecoin issuers. The Chinese mainland distinguishes between the mainland and the Hong Kong autonomous region in its approach to cryptocurrencies. So while many things are allowed in Hong Kong, they are prohibited in mainland China. Issuer applications were also seen as a global growth opportunity for the Chinese mainland at that time. We even said that China was expanding its borders and opening the yuan to the world in response to the steps taken by Trump.
Ye Zhiheng, executive director of the brokers department of the Hong Kong Securities and Futures Commission (SFC), probably in line with the instructions from the center, blocked the issuers, or rather slowed down the momentum, by saying that “the stablecoin regulatory framework increases the risk of fraud.”
Last month, Chinese financial institution Caixin published a report stating that Beijing was restricting Hong Kong’s stablecoin activities. Then they suspiciously removed the report. What is clear is that mainland China is still distant from crypto, and when this is combined with the positive steps taken by Trump saying “we cannot leave this in China’s hands”, it seems that the future of finance will be built in the west again.
Finally, China’s securities supervisory authority recently suspended the operations of RWA companies in Hong Kong. The interesting thing here is that China’s major commercial banks China Merchants Bank (CMB) It was the step taken by its Hong Kong-based subsidiary CMB International Asset Management (CMBI). CMBI in the middle of all this chaos BNB Chain Tokenized over $3.8 billion in money market funds.
