Chinese citizens buying Bitcoin in Hong Kong against the country’s law

Reportedly more than 50% offline crypto traders in Hong Kong are from the mainland of China. 

Hong Kong is a special administrative region of China. In mainland China, any kind of crypto-related activity is fully prohibited, since late 2021. While in Hong Kong, people are free to invest & trade in cryptocurrencies. In June of this year, Hong Kong authorities introduced a set of new rules to legalize crypto trading in the jurisdiction of Hong Kong. The new rules include all the necessary measures which are enough to provide clarity for the crypto firms to provide crypto services in Hong Kong. 

Recently the Financial Times (FT) reported that many people from mainland China are purchasing cryptocurrencies from offline stores in Hong Kong. 

The report noted that the new crypto regulatory framework in Hong Kong has no provisions or any kind of measures for offline crypto trading and these people are taking advantage of this loophole.

      -----Cryptonews AD----->>>  

Sign up for a Bybit account and claim exclusive rewards from the Bybit referral program! Plus, claim up to 6,045 USDT bonus at . https://www.bybit.com/invite?ref=PAR8BE

  <<<-----Cryptonews AD-----    

 

FT: At present, many mainland Chinese users go to offline stores in Hong Kong to buy cryptocurrencies. An OTC said that mainland Chinese users account for more than 50%. Hong Kong's current laws and regulations are still in a blank area for the supervision of offline…

— Wu Blockchain (@WuBlockchain) July 12, 2023

The report also covered the story of a few people who usually travel from mainland China to Hong Kong for crypto buy and sell. As per the report, nearly 50% of offline crypto traders in Hong Kong are from mainland China.

In late 2021, China imposed a blanket ban on all Crypto-related activities. Under the current rules & regulations, no mainland Chinese citizens are allowed to purchase or invest in cryptocurrencies.

Because of the crypto regulation in Hong Kong, mainland Chinese people have more options to deal with cryptocurrencies without getting notified by Chinese authorities. 

The majority of the offline crypto traders in Hong Kong try to remain away from mainland Chinese crypto traders, to remain away from any kind of legal hurdles. But some people take risks for a better amount of commission.

Read also: US Senate Finance Committee wants public input for the crypto taxation framework

Chinese citizens buying Bitcoin in Hong Kong against the country’s law

 

https://bitcoinik.com/chinese-citizens-buying-bitcoin-in-hong-kong-against-the-countrys-law/feed/

https://bitcoinik.com/chinese-citizens-buying-bitcoin-in-hong-kong-against-the-countrys-law/feed/