Arthur Hayes, former CEO of crypto exchange BitMEX, has spoken about the possibility of China returning to the digital asset industry with the help of Hong Kong.
He believes media reports about the Hong Kong Securities and Futures Commission's (SFC) plans to ease requirements for cryptocurrency trading confirm China's attempts to return to the digital asset market.
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Elizabeth Wong, director of financial technology at the SFC, has said:
"If the bill is passed, retail investors will be able to invest directly in virtual assets."
Hayes has said Hong Kong is a "trustee" through which China interacts with the rest of the world. In his view, the reorientation of China's administrative region is part of Beijing's strategy to weaken its position vis-à-vis cryptocurrencies.
Hayes has written:
"When China loves crypto, the bull market will come back. It will be a slow process, but the red shoots are budding.If these flows actually materialize in the way I imagine, they will be a strong supporting pillar of the next bull market."