Arthur Hayes. Source: screenshot from a videoArthur Hayes, a prominent American banker, businessman, and former CEO of crypto derivatives giant BitMEX, has speculated that the next crypto bull run will begin when China eases its stance toward the crypto market.
The cryptocurrency advocate argued that there are signs this is already happening, one of which is the Hong Kong government's recent announcement of a proposed law to regulate cryptocurrencies. In fact, Hong Kong acts as "the proxy through which China interacts with the world."
"Hong Kong's friendly shift towards crypto heralds China asserting itself in the crypto capital markets. When Choyna likes crypto, the bull market will return. It will be a slow process, but the red shoots are sprouting," he said in a statement. recent blog post. message titled "Comeback".
Hayes stated that China can view Hong Kong as a testing ground for its experimentation with crypto markets. Also, Chinese investors can use Hong Kong as a hub to enter global crypto markets.
“If these flows really materialize the way I envision, they will be a solid pillar of the next bull market. Imagine a bull market supported by all the major central banks controlling the yield curve and Chinese retailers buying Bitcoin in Hong Kong,” added. .
Since 1997, Hong Kong has been part of China under the "one country, two systems" approach. The country is allowed to establish foreign relations in certain areas, including trade, communications, tourism, and culture.
Hong Kong Plummets From Crypto Hub Global Rankings
According to a study conducted by Forex Suggest earlier this year, Hong Kong was ranked as the country best prepared for mainstream crypto adoption, with a crypto readiness score of 8,6. The study considered various factors such as crypto ATM facilities, pro-crypto regulations, and startup culture.
However, by the end of September this year, Hong Kong reportedly lost that position largely due to its regulatory ambiguity on cryptocurrencies. This has forced several major cryptocurrency-focused companies and events to relocate their operations to Singapore and other countries and territories considered friendlier.
Meanwhile, the country is expected to announce its stance against digital assets at the end of the month. As reported, the authorities of the Hong Kong Special Administrative Region in China will present a policy statement at the upcoming Hong Kong Fintech Week event, which will take place from October 31 to November 1.
"The policy statement will make our policy stance on virtual assets clear to global markets. It will also demonstrate our commitment and determination to explore financial innovations with the global virtual asset community," said Treasury and Financial Services Secretary Hong Kong, Christopher Hui. Ching-yu.