As stringent COVID-19 stipulations still haunt various parts of China who is hoping to ease out of them early next year, the Chinese crypto community is facing a slump. Three years ago, Hong Kong was the booming center of crypto activity that attracted cryptocurrency investors from around the globe. This drastically changed in the face of strict quarantining measures, recession-hit uncertainties and volatility that stretched over the economic scene at large, and the crypto realm specifically in the last few years. All these factors have isolated the capital from the rest of the world that was showing keen interest in its crypto life.
Restrictive Legislations Impeding Crypto Boom in China
Tightening clampdowns have been coming from Chinese administrative bodies recently who are attempting to curb the evolution of blockchains and bring it under government ambit. This is being done for a number of reasons like combating tax evasion and averting finance-based fraudulent activities. It has become compulsory now for crypto firms to become licensed if they wish to carry on trading affairs in the capital. This is all bad news for a community that is already reeling from prohibitive legislation trying to bring down the popularity of fintech and crypto assets.
Nonetheless, the crypto enthusiasts of the nation are hoping that Hong Kong will be able to bounce back and retake its status as a thriving crypto nucleus soon. Presently, more than 80% of crypto applications running worldwide have Chinese roots. With the capital trying to find a way to create a crypto-friendly atmosphere once more, a silver lining is on the horizon for the Chinese crypto circles.