China was emerging as the epicenter of the crypto industry. Within a decade, the country witnessed the spawning of giant exchanges like Binance Holdings Ltd. as well as the biggest Bitcoin mining firms. However, Beijing’s move to ban crypto trading and mining last year seemed poised to douse the entire domestic industry.
But the ripple effects of the ban in Mainland China led to a disruption in Hong Kong’s strategic ambiguity with regard to the legal status of crypto, and the territory became a less friendly place driving companies to set camp elsewhere, including – Singapore, Dubai, and The Bahamas.“Hong Kong’s friendly reorientation towards crypto portends China reasserting itself in the crypto capital markets. When Choyna loves crypto, the bull market will come back.
Hayes also believes the Chinese government is starting to view Singapore as a bigger threat to its dominance than the continued political drift of Hong Kong. Hence, favorable policies can reassert the city’s relevance in terms of finance and crypto.