A crypto bull run may be on the cards according to Changpeng Zhao, also known as ‘CZ’ in crypto circles. And what makes he of vested interest say this?
A report out of China has said that in the Hong Kong Special Administrative Region, applications for legal crypto and NFT platforms are being taken.
CZ said in his Tweet of this morning, “CCTV (China Central Television) just broadcasted crypto. It’s a big deal. The Chinese speaking communities are buzzing. Historically, coverages like these led to bull runs.”
While Hong Kong operates somewhat differently to Mainland China, the tweet seems to imply that all of China might eventually be able to access the crypto and NFT platforms that get approved in the special administrative region.
A spokesperson from Binance told The Chainsaw, “CZ’s tweet was more broadly speaking to crypto potentially being introduced to China and the subsequent bull run because of the overall global hype.”
Crypto bull run: The news out of China
CZ was referring to a report out of China which can been seen here. We translated it so you don’t have to.
“The Hong Kong Securities and Futures Commission (SFC) announced today that its preparations for virtual asset trading in Hong Kong are underway. Beginning June 1, the SFC will be accepting applications for virtual asset trading platforms.”
Those platforms already existing will need to obtain approval if they want to provide virtual asset trading services in Hong Kong. “Operators that do not intend to apply for a license are urged to wind down their business in Hong Kong in an ‘orderly manner’.”
Mr. Keith Choy Chung Fai, Interim Head at the Hong Kong Securities and Futures Commission, said, “We have seen in the past… online security has always been a very important challenge. Next, is the protection of customer assets, how to store them, and how to manage them.” Choy also mentioned that they will be also focusing on internal controls of the platforms.
Choy also stressed that although the rules come into effect on June 1, the SFC has yet to grant approval to any virtual asset trading platforms to provide services to retail investors, and existing platforms that are accessible to the public are not yet regulated by the SFC.”
Will China legalise crypto?
China has flip-flopped on the crypto question, banning it and unbanning it seemingly a million times.
Even if China does make crypto and NFTs legal, there’s no guarantee that this will always be the policy. It also doesn’t guarantee a bull run. We can live in hope however, that one day, everyone on the face of this planet can use crypto should they feel the urge. But for now, that seems far, far away.