Despite Hong Kong's progress in cryptocurrency adoption, mainland China has maintained its anti-crypto stance in terms of local regulations.
Some state-affiliated banks in China have opened bank accounts to serve crypto clients in Hong Kong, but this does not indicate any changes in mainland regulatory regulations or the Chinese government's attitude towards crypto.
CPIC Investment Management, a China government-backed firm regulated as a Hong Kong entity, launched two cryptocurrency funds in April, but this does not imply any changes in China's crypto policies.
CPIC Investment Management CEO Chenggang Zhou does not expect the Chinese government to change its crypto policies in the foreseeable future.
China wants to increase its foreign currency deposits, whether that is fiat to purchase crypto or crypto itself, but they are bifurcating the markets to shut out domestic Chinese customers while attracting foreign customers.
The crypto market in mainland China is still effectively shut down, raising enforcement concerns about Chinese clients getting a chance to use Hong Kong exchanges to get money out of China.
Crypto exchanges in Hong Kong have strict Know Your Customer policies, which aim to restrict mainland Chinese investors on their platforms.
Hong Kong's promotion of Web3 and crypto does not indicate any changes in mainland regulatory regulations or the Chinese government's attitude toward crypto.