Hong Kong isn’t the loophole Chinese crypto firms think it is

China’s 2021 crypto ban remains intact, and lawyer Joshua Chu explains why supposed loopholes in Hong Kong and beyond are illusions that end in crackdowns.

Chinas crypto ban has been in place since 2021, but that hasnt stopped companies from chasing what they believe are ways to reenter.

Hyped-up stablecoin announcements in Hong Kong and overseas listings that hint at digital assets are just some of the ways companies are testing boundaries. Each time, Beijing responds with fresh warnings a stark reminder that Chinas crypto U-turn isnt around the corner.

The latest warning reportedly came from the China Securities Regulatory Commission, which advised companies to pause real-world asset ventures in Hong Kong. It followed a state-owned company scrubbing announcements about tokenizing bonds and other enterprises revealing RWA projects, piling on recent warnings against stablecoins after Hong Kong introduced its licensing framework.

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