Brothers, we currency speculators, are we all suffering from such a well-known problem? That is, why does mainland China not allow virtual currency transactions, but Hong Kong does not? Yes or no? Do you have? Okay, today, let me talk about my understanding of this topic from three aspects.

First of all, it is an issue of absolute laws and regulations. As we all know, in China, in 2013, the People's Bank of China and five other ministries and commissions issued the "Notice on Preventing Bitcoin Risks," right? It was 2013, and then it was clearly stated that Bitcoin did not have the status of a legal tender, and financial institutions were prohibited from directly or indirectly participating in Bitcoin transactions. It can be said that in 2013, this attitude was quite tough.

And since then, with the development of the cryptocurrency market, a series of measures have been introduced in China, including suspending the operation of virtual currency exchanges, banning the issuance of tokens, that is, ICO, etc., right? It is said to protect the interests of investors, but in fact it means to prevent financial risks.

As for Hong Kong, in 2014, it also issued a statement stating that cryptocurrency does not belong to legal tender. However, at that time, it did not ban virtual currency exchanges, and there were not many actions against cryptocurrency. It can be said that, At that time, Hong Kong's attitude was quite ambiguous. And when I think about it now, it may be that this gap was left in order to now open its arms and fully accept cryptocurrency. You can think about it, is this the case?

Secondly, there are issues with regulatory agencies. Domestic virtual currency exchanges are supervised by multiple regulatory agencies, including the People's Bank of China, China Securities Regulatory Commission, State Administration for Industry and Commerce, etc. And these institutions focus on protecting the stability of the country's financial system and preventing financial risks. In human terms, they embody extremely strong control.

In contrast, in Hong Kong, the main regulatory agency is the Hong Kong Monetary Authority. While ensuring the stability of Hong Kong's financial system, its main responsibility is to protect the interests of investors. Therefore, it is relatively simple and relatively relaxed, so it is relatively open.

Finally, there is the issue of differences in policy background. Because virtual currency involves issues such as cross-border flows and anti-money laundering, it has a very negative impact on national economic security and financial stability. As for our country, we all know that we will devote our lives to maintaining the stability of the financial system and avoiding the transmission of financial risks. Here, speaking in human terms, we do not allow the intrusion of any uncontrollable factors. The emphasis is on maintenance. stability.

But not Hong Kong. As an international financial center, what does Hong Kong focus on? It is the development and innovation of financial markets that allow virtual trading platforms, which are inseparable from its status as an international trade and investment hub. Therefore, precisely because of Hong Kong’s particularity, open regulatory environment, and legal system, it can better cope with the technical and risk challenges brought by virtual trading platforms.

But domestically, the huge population base does not allow the country to do so freely.