The CEO of HashKey Group, Xiao Feng, nicknamed the 'Father of Chinese Blockchain', speculated on how regulation of the crypto industry may change in China and Hong Kong.
The head of HashKey stated that there is currently a surge around stablecoins in Hong Kong, however, Chinese regulatory authorities remain very cautious about them. The top manager sees a serious gap between market enthusiasm for crypto assets and reality. According to Xiao Feng, the main use of stablecoins is to be an intermediate means for trading volatile crypto assets.
Mainland China is gradually returning to the world of cryptocurrencies due to pressure from currency competition, and this process is starting with stablecoins, said Xiao Feng. The PRC will focus on tokenized real-world assets (RWA), and ultimately, the authorities may accept Bitcoin, speculated the 'father of Chinese blockchain.'
The head of HashKey Group stated that the authorities in Hong Kong are paying attention to anti-money laundering (AML) rules, as this special administrative region of China is striving for the reputation of an important financial center. In the fight against money laundering, blockchain can surpass traditional systems, as all transactions can be transparently tracked on the blockchain, said Xiao Feng.
"Hong Kong has the opportunity to be an international financial center. It operates under a common law system within the 'One country, two systems' concept. Hong Kong serves as a bridge between China and the rest of the world. The fate of Hong Kong is to become the Asian Wall Street. In contrast, Singapore acts as the Asian Switzerland. Their financial strategies are completely different," reasoned Xiao Feng.
Since August 1, the authorities in Hong Kong have tightened penalties for promoting stablecoins without government licenses. Violators face a fine of 50,000 Hong Kong dollars ($6,300) and imprisonment for up to six months. Previously, the Hong Kong Monetary Authority (HKMA) warned that it would issue licenses to a limited number of companies issuing stablecoins.