The new notification from the National Financial Regulatory Administration has sparked heated discussions in the cryptocurrency circle!
Yesterday, a notification from the National Financial Regulatory Administration caused a stir in the cryptocurrency and banking sectors. The notification announced that banks from Hong Kong and Macau will be allowed to conduct domestic bank card business, and this news quickly attracted widespread attention.
Many people mistakenly believe that this is a comprehensive easing of financial controls, but that is not the case. What has been relaxed is only the domestic card business, and the permissions for opening accounts for overseas cards have not been lifted.
So, what is the significance of this policy adjustment?
In the past, the mainland branches of banks from Hong Kong and Macau could not provide bank card services to mainland citizens. Now, this barrier has been broken, and mainland citizens are expected to be able to apply for domestic cards at these branches. But please note that these cards are still subject to domestic regulation and are different from overseas cards that enjoy the privilege of free foreign exchange circulation.
What are the differences between domestic cards and overseas cards? Domestic cards act as the “gatekeepers” of the financial market, strictly regulated by the National Financial Regulatory Administration, with limited foreign currency exchange quotas each year, aimed at maintaining financial security and stability. In contrast, overseas cards are like “free birds,” unbound by domestic regulations, allowing for the free flow of foreign exchange funds.
Moreover, domestic cards have limited functions, primarily used for the domestic securities market. Cardholders can only open A-share accounts, or open the Hong Kong Stock Connect after meeting certain financial thresholds. In comparison, overseas cards serve as keys to the international financial market, allowing users to open overseas accounts, freely buy and sell overseas assets, and even dabble in areas like cryptocurrency.
Therefore, the National Financial Regulatory Administration will not easily loosen the restrictions on opening overseas cards domestically. If these restrictions are lifted, a large amount of capital may flow into overseas stock markets, cryptocurrencies, and other high-risk areas, leading to capital outflows from the domestic market, pressure on the RMB exchange rate, and a weakened capital foundation for the A-share market.
In summary, this policy adjustment by the National Financial Regulatory Administration is a cautious decision made against the backdrop of maintaining financial security and stability. In today's increasingly globalized world, finding a balance between ensuring safety and promoting openness will be an important issue it faces in the future.
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