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Former CEO of Bitmax: Hong Kong can be the key to China’s return to the digital currency market

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Arthur Hayes, the former CEO of the digital currency exchange and financial services company BitMEX (BitMEX), believes that the growing trend of the market will start with the return of China to the digital currency market, and that Hong Kong will play a vital role in this process.

Hayes on October 26, posted titled “Comeback” published in his blog; In his post, he fueled the issue that the Hong Kong government is trying to ease the space for China’s return to the market by introducing a bill to regulate digital currencies. This action can be because “Hong Kong is considered as a means of interaction between China and the world”:

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With China’s strong interest in digital currencies, the bullish trend of the cryptocurrency market will return again. This process takes some time; But the red shoots are sprouting.

Hayes believes that Hong Kong may become Beijing’s testing ground to explore cryptocurrency markets. In fact, Hong Kong is becoming a capital hub for China to find its way into the digital currency market internationally:

If these flows materialize according to my assumptions, China and Hong Kong will become a strong pillar of support for the future bull market.

According to Hayes, “Hong Kong’s orientation as the center of the digital currency market” is seen as one of the strengths of Beijing’s strategy to reduce its position; so that the domestic financial system of the country does not suffer from instability.

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According to the article published in Forex Suggest platform In June 2022, Hong Kong was selected as the country most ready for widespread adoption of digital currencies. In order to reach such a position, this country considered factors such as installing digital currency ATMs, establishing regulations for access to digital currency, and giving importance to startup culture.

China has one of the largest economies in the world; But mostly, he has had a hostile and negative attitude towards the digital currency industry. For example, China first banned banks from trading bitcoins in 2013.

In 2021, Beijing increased its efforts to crack down on cryptocurrency trading. Beijing launched a regulatory crackdown to eradicate Bitcoin mining from the country and then outlawed all cryptocurrency transactions. However, Hayes believes that China has not left the digital currency market and has only been inactive in this area.

China resumed Bitcoin mining operations in September this year. Chainalysis (a leading blockchain analytics company) has announced that China has re-entered the top ten countries in the cryptocurrency market in its 2022 Global Crypto Adoption Index.

Due to the severe suppression of digital currency transactions by the Chinese government, the authors of the Global Crypto Adoption Index considered this step of the said government “unique”. Of course, based on the data obtained, they consider China’s past action to ban Bitcoin mining to be ineffective.

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Adib

Adib Zahedi is the CEO and Founder of mazhd.com. He has nearly a decade of experience in IT, including two years spent working on a Youtube Chennal. He is also an author and writes articles for mazhd.com. Has articles include tutorials and covers everything from Windows PCs to smartphone's software.

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