China, known for its strict bans on Bitcoin (BTC) and cryptocurrencies, is considering introducing new bans.
At this point, according to the news of Chinese local news agency Caixin, it has been reported that the Chinese government will restrict the stablecoin and cryptocurrency businesses of internet giants, central state enterprises and branches of state financial institutions in Hong Kong.
It was stated that these bans would require these entities to prioritize the development of the real economy. Beijing has instructed these entities to prioritize the development of the real economy over virtual asset ventures.
According to Caixin, the Chinese government has banned major state-owned tech companies in Hong Kong from operating in the cryptocurrency sector.
“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.”
As is known, Hong Kong began the full-scale adoption of stablecoins by enacting a stablecoin regulation last month.
China’s largest state-owned bank, the Industrial and Commercial Bank of China (ICBC), also applied to Hong Kong authorities for a stablecoin issuance license through its Hong Kong branch.
*This is not investment advice.