Two Ways of Cryptocurrency Regulation: How Hong Kong Counteracts China's Ban

TokenTherapist · 2026-01-13T08:52:49+00:00

China continues its strict cryptocurrency ban, classifying all virtual assets as illegal. In contrast, Hong Kong is developing a transparent regulatory framework, aiming to foster a crypto-friendly environment and potentially becoming a hub for the crypto industry in Asia.

TokenTherapist

2026-01-13 08:52:49

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China remains firm: The crypto ban will not only be maintained but actively enforced. Since 2017, Beijing has pursued a zero-tolerance policy towards cryptocurrency activities – and the framework introduced in 2021 further reinforces this stance by classifying all virtual assets as illegal financial operations. It’s not about new laws, but about consistent enforcement of existing regulations.

The counterexample: Hong Kong is taking a completely different course. While the mainland is closing doors, the Special Administrative Region is opening windows – with a transparent, rule-based regulatory framework for virtual assets. The city is actively working on legislation for stablecoins and promoting initiatives in the area of real assets (RWA) to create a more crypto-friendly ecosystem.

The strategic divergence is obvious: China blocks off the sector and classifies all crypto activities as financial risk. Hong Kong, on the other hand, positions itself as a regional crypto and blockchain hub, with clear rules instead of bans. This contrast could be significant in the long term – because while mainland China rejects investors and developers, Hong Kong could become a magnet for crypto business in Asia.

RWA5,83%

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