The People’s Bank of China has recently released its annual Financial Stability Report, strongly emphasizing cryptocurrency regulation.
The Block reported on Monday that while the People’s Bank continues enforcing a cryptocurrency trading ban in China, Hong Kong is actively reviewing cryptocurrency licenses.
The report said 51 jurisdictions worldwide have implemented bans or restrictions on cryptocurrency assets. At the same time, some nations have opted to adjust existing legislation or enact new laws to regulate the sector.
In September 2021, Chinese regulators announced a comprehensive ban on all cryptocurrency trading and mining activities within the Country. In contrast, Hong Kong has adopted a more welcoming stance toward cryptocurrency firms.
Hong Kong also officially launched a licensing system for cryptocurrency trading platforms in June 2023. Under this system, licensed exchanges are permitted to offer retail trading services. The People’s Bank’s Financial Stability Report noted that Hong Kong now requires major financial institutions, including HSBC and Standard Chartered Bank, to incorporate cryptocurrency transactions into their regular customer monitoring processes.
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