$BTC China and Cryptocurrencies: A Regulatory Duality

Since 2021, mainland China has maintained a strict ban on private cryptocurrencies, shutting down exchanges and prohibiting mining. However, the Asian country actively recognizes and promotes blockchain technology as a key infrastructure for innovation. In addition, the digital yuan (e-CNY) is advancing as the state’s bet in the digital currency space.

In contrast, Hong Kong emerges as a pro-crypto "hub" under the principle of "one country, two systems." The special administrative region allows the trading of cryptocurrency ETFs and has begun granting licenses to global exchanges like Binance ($BNB), seeking to attract investment and talent to the digital asset sector.

This duality reflects a complex strategy: mainland China seeks to control the digital currency space through its CBDC and the underlying technology, while Hong Kong explores the potential of private cryptocurrencies under a more permissive regulatory framework.