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24th May 2023 > > Hong Kong.

tl;dr

The crypto revolution is taking hold within one of the world’s most authoritarian regimes.


Market Snap (at time of writing)








Market Wrap

After just 24 hours BTC is straight back into the narrowest of trading ranges with leveraged shorts trying to exacerbate the move. With just a week to go until the US debt deadline is upon us (give or take) financial markets will remain on edge until there is announcement that the US government can merrily continue with its fiscal incontinence.


Curious Cryptos’ Commentary – Hong Kong

The SFC (Securities and Futures Commission) has previously licensed two firms to operate as a VA (virtual asset) trading platform, though I doubt you have heard of either of them – OSL Digital Securities Ltd. and Hash Blockchain Ltd.:



SFC CEO Julia Leung has promised new guidelines and a new licensing regime for centralised cryptocurrency exchanges, as well as new rules allowing retail to invest in a limited number of larger cryptos as from June 1st. Christopher Hui, Secretary for Financial Services and the Treasury, explains the government’s ambitions:


“Hong Kong is well-positioned to be a leading hub for Web3 in Asia and beyond, and we attach great importance to virtual assets and Web3”.


This is surprising news.


Hong Kong’s independence, though previously guaranteed by China, has been forcefully smashed to pieces.


The authoritarian mindset of China’s ruling elite could never sit well with the freedoms inherent in Hong Kong. Nor in the decentralised world leading to a “ban” on crypto mining and trading within China initially in 2017 and reinforced in 2021. The exodus of mining power to other countries, not least the US, must have caused some head scratching in the offices of the Communist Party of China faced as they were for the very first time with clear evidence that simply banning things doesn’t work in the real world.


And until now, there has been no sign of a reversal in this policy. Some less well-informed commentators may point to China’s over-enthusiastic embrace of CBDCs (Central Bank Digital Currencies) as proof of a pro-crypto mindset, but regular readers know the reverse to be true.


There is no doubt that this re-introduction of cryptos to Hong Kong has the approval of President Xi and his murderous henchmen.


It must be seen as an experiment as to how far China is prepared to let the crypto revolution rip.


Perhaps it is indicative of a developing mindset within the ruling elite that the decentralised world cannot be controlled by political will alone.


I often complain about the increasing politicisation of cryptos by those who should know better. Is this the start of a process of cryptos forcing the political world to change for the better?


Now that really would be a crypto revolution.

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