Prospects for the legalization of digital currency in the mainland: a new chapter for Shanghai-Hong Kong Stock Connect and QDII funds
An exciting news is brewing: the pace of legalization of digital currency in the mainland is steadily advancing. This is not a simple liberalization of legal currency transactions, but a well-thought-out and precisely paced financial reform. We must remain rational, neither overly enthusiastic nor blindly pessimistic.
Looking back, I have always believed that as long as the cryptocurrency ETF shows strong profitability in the Hong Kong market, mainland funds will naturally find a channel to flow in. After all, in the world of capital, profits and returns are the eternal driving force. And now, this prediction seems to be becoming a reality.
According to well-known investor Richard Byworth, the Hong Kong Bitcoin spot ETF may be included in the Shanghai-Hong Kong Stock Connect plan. This news undoubtedly brings exciting dawn to the entire digital currency field. Shanghai-Hong Kong Stock Connect, a bridge connecting the Shanghai and Hong Kong stock markets, allows qualified investors to buy each other's stocks under quota restrictions.
Shenzhen-Hong Kong Stock Connect further broadens the investment channel between Shenzhen and Hong Kong. If Bitcoin spot ETF can be included in this system, mainland investors will have the opportunity to participate in digital currency market investment more conveniently.
At the same time, we should also see that although China has imposed restrictions on Bitcoin mining and foreign cryptocurrency exchanges in 2021, digital currencies such as Bitcoin are still regarded as legal property in multiple jurisdictions. This reflects China's cautious attitude in digital currency regulation and leaves enough room for future development.
Looking ahead, the process of legalization of digital currencies in the mainland will gradually deepen. From the establishment of the Hong Kong BTC/ETH ETF, to the emergence of QDII funds that can be redeemed by mainland funds, to the inclusion of digital currencies in the Hong Kong Stock Connect for trading, each step requires time and legal adaptation. But we have reason to believe that in the near future, these ideas will become reality one by one.
Although there may still be some challenges in directly using RMB to purchase cryptocurrencies, we already have enough tools and methods to participate in this vibrant market. Let us look forward to the bright future of the legalization of digital currencies in the mainland.
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