25-3-2025 – The landscape of digital assets in Asia’s largest economy could be poised for transformation, according to HashKey Capital’s Chief Executive, Chao Deng. His Hong Kong-based firm, which recently clinched a prestigious Type 1 licence from the territory’s Securities and Futures Commission, has detected promising signals from mainland financial regulators.
The election of Donald Trump as US President in 2024 appears to have catalysed this evolving stance. “The regulatory framework’s clarity under Trump’s administration has bolstered confidence amongst institutions and wealthy individuals to venture into Web3 and cryptocurrency through legitimate channels,” Deng observed.
This optimistic outlook finds resonance with Red Date Technology’s CEO, Yifan He. Having previously dismissed any possibility of China relaxing its crypto restrictions, He now projects more than even odds of policy liberalisation within the coming three years.
Intriguingly, despite the mainland’s official prohibition on cryptocurrency trading, advertisements for Bitcoin and related digital currencies have surfaced on Alipay, China’s dominant payment platform. However, betting markets remain sceptical, with Polymarket indicating nil probability of Beijing lifting its Bitcoin ban by March’s end.
Whilst mainland China maintains its cryptocurrency prohibition, it has embraced the underlying blockchain technology. Hong Kong, operating under its distinctive administrative framework, has emerged as a proving ground for financial innovation, particularly in cryptocurrency and Web3 sectors.
HashKey Capital, already wielding multiple virtual asset management licences, views Hong Kong’s regulatory success as potentially influential in reshaping mainland policy. “Should Hong Kong’s approach prove fruitful, Beijing might reassess its position,” Deng suggests, highlighting the territory’s role as a financial laboratory for the wider Chinese market.
