Despite China officially maintaining a long-time anti-cryptocurrency stance, mainland Chinese state-affiliated banks have increasingly opened bank accounts to serve crypto clients in Hong Kong. This is evidenced by the launch of two cryptocurrency funds by CPIC Investment Management, a China government-backed firm regulated as a Hong Kong entity, in April.

However, CPIC Investment Management's CEO Chenggang Zhou emphasizes that all of this doesn't indicate the Chinese government will soften its approach to regulating Bitcoin (BTC) anytime soon. Zhou highlights that CPIC operates as a downtown Hong Kong-based entity regulated by the Securities and Futures Commission, not China's regulations.

Zhou is not alone in believing that China remains and will continue to stand-offish towards cryptocurrencies, as Lesperance & Associates founder David Lesperance would agree that the Chinese government is not planning to loosen restrictions anytime soon. Lesperance states that China is aiming to increase its foreign currency deposits, including both fiat currency and crypto assets. He also notes that the crypto market in mainland China is "effectively shut down".

Furthermore, both Zhou and Lesperance note the strict Know Your Customer policies implemented by Hong Kong exchanges, which restrict mainland Chinese investors. Zhou further states that: "I don't expect any licensed crypto exchanges in Hong Kong to accept onshore mainland citizens to trade in the exchanges".

In conclusion, it is evident that regardless of the recent developments in Hong Kong with regard to crypto adoption, mainland China's stance on cryptocurrencies remains unchanged and highly restrictive. This is likely to remain the case in the foreseeable future as the Chinese government is determined to maintain strict regulations and prevent any leakage of currency out of the country.



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