Brothers, let me clarify this question that many people have asked repeatedly: why does the mainland crack down hard on Bitcoin and virtual currencies, while Hong Kong boldly issues licenses and develops stablecoins? Isn't this the state slapping itself in the face?
In a word: afraid of flipping.
The fluctuations of this thing called currency are like riding a rocket; retail investors can easily lose everything with a single bet. If things go wrong, some might even jump off buildings or petition the authorities, and in the end, the country has to bear the blame. With the numerous issues of money and fleeing, when the higher-ups see this, they exclaim, 'Oh my, isn't this a ticking time bomb?' So they decided to cut it off completely and ban it first. After all, the renminbi is the boss; why should Bitcoin steal the show?
So why has Hong Kong opened up again?
Hong Kong is not here to take jobs from the mainland; it's competing with Singapore, Dubai, and the United States for international business. Its positioning is 'I am a global financial center, I need to play with the latest things.' You see, starting in 2023, licenses are being issued, and by August 2025, when the stablecoin regulations are implemented, JD and Ant have all lined up to apply. Why? Because Wall Street funds and overseas cryptocurrency big shots have billions of idle dollars looking for a place that 'understands the rules and is relatively safe' to play, and Hong Kong is eager to be that 'friendly port in Asia.'
Is this not contradictory?
Not contradictory at all!
The mainland and Hong Kong are originally two systems; the policy given by our ancestors is called 'one country, two systems.' Simply put: the mainland is responsible for stability, while Hong Kong is responsible for aggression. Stable areas must not have disruptions, and aggressive areas need to test the waters first. If successful, the mainland will gradually learn; if mistakes are made, at most Hong Kong will face setbacks, without harming the core of the nation.
Let's take the simplest example:
Your eldest (mainland) is afraid the child will play with fire and burn the house down, so they directly took away all the lighters;
Your second child (Hong Kong) is bold, saying, 'I can light a small fire pit in the yard to roast meat, and also sell skewers to make money.' The eldest said, 'Sure, go ahead, just don't bring the fire back home.' So you see those compliant platforms in Hong Kong stressing 'we do not serve mainland clients' are just afraid of a fire spreading.
In summary, three words:
Mainland: Stability comes first
Hong Kong: Competing for business
Country: Both hands on deck
What do you think of this operation? Truly a battle between left and right, the left hand strikes the right hand, while the right hand guides the left hand, playing to the fullest. Retail investors should remember one thing: don't act recklessly in the mainland, if you want to play in Hong Kong, just go through KYC honestly.
