Hong Kong Crypto Regulations: New BULL Run Incoming?!

The next crypto bull market could begin In less than 24 hours that's because Hong Kong will be legalizing retail Crypto investing and trading This could cause billions of dollars of Inflows into BTC and the largest Altcoins the result would be a massive And sustained rally so today I'm going To tell you everything you need to know About Hong Kong's crypto regulations Reveal which cryptos will benefit the Most and explain why there might be a Dump before there's a pump Let's start with a bit of background Once upon a time Hong Kong was Pro Crypto and it became a major crypto Hub After China first cracked down on the Industry during the 2017-2018 bull Market that's because the biggest crypto Companies and projects on the mainland Were able to migrate to the Administrative state For context Hong Kong is a city-state That sits on China's Southern Seashore And is technically a part of China The reason why crypto companies and Projects were able to migrate there Despite China's crypto Crackdown was Because of the so-called one country two Systems constitutional arrangement Under one country two systems Hong Kong Is allowed to have laws and government Structures that are different from those In China

Now this constitutional Arrangement was Agreed in the 1980s came into force in 1997 when British colonial rule of the Territory ended and is set to expire in 2047. upon expiry Hong Kong will Officially become part of China One Country one system If you watched our video about the Countries that will drive the next Crypto Bull Run however you'll know that The one country two systems basically Ended in mid-2020 after a controversial National security law was passed in Hong Kong some of you might remember the Protests from around that time Not surprisingly Hong Kong banned retail Crypto trading and investing in late 2020 and cracked down on the crypto Industry What's surprising is that the Administrative State continued to allow Institutional crypto trading and Investment still it was enough to scare Most of the crypto industry offshore now For reference institutional that is Professional investors in Hong Kong must Have more than one million US dollars of Investable assets if they're individuals Or more than six million dollars in Assets if they are institutions they Must also be residents of Hong Kong the More you know Now Hong Kong's hostility to the crypto Industry continued until October last

Year when it suddenly announced that it Was considering legalizing retail crypto Trading once again This is significant because 93 of Hong Kong's 7.4 million citizens fall into The retail category note also that Hong Kong is a very wealthy state The announcement was also significant Because of the de facto one country one System Arrangement that arose because of That National Security Law put simply Hong Kong's intentions to legalize Retail crypto trading in the city-state Could foreshadow similar laws being Passed in mainland China Naturally China denied that it desired To follow in Hong Kong's footsteps and Insisted that the pro crypto shift was Purely of the city-state's own volition And yet it was reported that state-owned Chinese Banks were catering to crypto Clients in Hong Kong just one of many Examples of China's changing stance more Recently Chinese State media aired a Segment about cryptocurrency and a Chinese Authority published a white Paper about web3 even so the crypto Segment was subsequently removed and the Web3 white paper reportedly has more to Do with AI and the metaverse than actual Cryptocurrencies as for Hong Kong it Revealed its revamped crypto regulations Just last week specifically on the 23rd Of May

Details about these regulations have Been circulating for months but the only Thing that was set in stone was the Start date Hong Kong's crypto Regulations go into force on the 1st of June any minute now in other words but Before you go long with 100x leverage You should know that a rally on day one Is not guaranteed this is because of the Details of Hong Kong's crypto Regulations which you need to be aware Of if you do plan on trading this note That you can check out my deals page in The description for trading fee Discounts and bonuses anyway Shilling Aside the first thing you need to know Is that all crypto exchanges in Hong Kong will need to register with the Securities and Futures commission or sfc Here's the catch though application for Registration opens on the 1st of June in Other words there might not be any Registered crypto exchanges for retail On day one as reported by cointelegraph Registration isn't going to be cheap and It's going to take lots of time that's Because crypto exchanges will need Insurance independent assessment reports Regulated cryptocustodians and will even Need to track every crypto transaction As per the fat F's Infamous travel Rule Now this ties into the second thing to Know and that's that any crypto Exchanges not already registered with

The sfc will instantly become illegal in Hong Kong come the 1st of June the sfc's Website also notes that only two crypto Exchanges are currently registered with The regulator neither of them serves Retail This means it's possible that even Institutional investors will initially Face restrictions when Hong Kong's new Crypto regulations first come into Force Obviously the absence of any immediate Inflows from retail combined with a Possible decline in institutional Investment could cause crypto to dump Not pump that said gate.io okx and Hobie Have all reportedly registered with the Sfc for retail access already however The original announcements suggests that These exchanges merely intend on Registering come the first of June Hobie's announcement suggests that it Will open its doors to retail later this Year at the earliest on the retail user Side meanwhile there will also be lots Of restrictions even once crypto Exchanges have registered everything Besides basic investing and trading will Be off limits retail investors will also Only be allowed to invest in large cap Cryptos namely those listed on a at Least two regular exchanges elsewhere Think basically ETFs Now the Silver Lining is that deposits From and withdrawals two exchanges will

Be allowed meaning retail investors can Self-custody their crypto this Silver Lining shines bright considering that The ability to withdraw could make it Possible for retail investors to access Smaller altcoins and other crypto niches The only caveat is that Hong Kong's Adherence to the fataf's so-called Crypto recommendations could create Issues for any retail investors who try To access restricted coins tokens or Services on chain they could be labeled As high risk and banned from depositing Withdrawing trading or investing Altogether Labeling self-custodial and on-chain Activities is exactly how the fat F Plans to kill crypto and you can learn More about its so-called recommendations Using the link in the description So this begs the question of which Cryptos will benefit the most once Hong Kong's retail crypto regulations come Into force or rather when crypto Exchanges start receiving their retail Licenses from the sfc the short answer Is nobody knows because the sfc hasn't Provided a list of acceptable cryptos Besides the requirement of being listed On at least two regular exchanges Elsewhere the only other one seems to be That the coin or token has been around For more than a year Stable coins are also off limits to

Retail investors but the sfc suggested This could change when stablecoin Regulations are introduced in any case The crypto Community has created lists Of acceptable cryptos based on the sfc's Bare Bones criteria it's very likely That Bitcoin ethereum Litecoin Bitcoin Cash polka dot Solana cardano Avalanche Polygon and chain link will all be Available to retail investors in Hong Kong very soon the actual list may be Much longer given that there are Multiple exchange traded funds which Include multiple altcoins unfortunately It's not currently clear if these would Meet the sfc's criteria for what it's Worth you can check out the list of Cryptos listed on regular exchanges Using the just ETF website On that note Kobe gate IO and okx have Already announced the cryptos they plan On listing on their exchanges huobi Noted that it will list BTC eth and Quote other major cryptocurrencies According to crypto journalist Colin Wu Gate IO somehow already lists BTC eth LTC Bch.matic soul and uni okx's cryptolist Is where things get interesting Colin Noted on Twitter that okx will offer BTC Eth Ada Matic Soul dot uni link sand LTC Avax AXS atom xlm usdt and usdc to Retail investors now this is interesting Because usdt and usdc are obviously both

Stable coins which are explicitly off Limits to retail This can be explained by the fact that The okx announcement Colin referenced Doesn't mention retail investors as such It's possible that the stablecoin Offerings will only apply to Institutional investors the presence of AXS and sand are harder to explain However neither is listed on a regular Exchange Colin believes that the Presence of AXS and sand is due to the Hong Kong government's support of Animoker Brands which is based in Hong Kong and has invested heavily in both Axi infinity and the sandbox if Colin is Correct then it means that additional Cryptocurrencies could magically make The cut Speaking of which I should point out That gate IO and okx both intend on Listing uni swap's uni token now uni Swap is obviously a decentralized Exchange a D5 protocol which is also off Limits to retail heck an sfc official Explicitly stated that quote providing Automated trading Services is a Regulated activity gate IO and okx's Plans to list uni could therefore be a Sign that D5 protocols may not face the Same degree of regulatory scrutiny Officials have hinted at nor the same Degree of oversight speculated earlier This means that retail investors in Hong

Kong could perhaps be able to find their Way into other altcoins but I'd be Remiss if I didn't explain how Hong Kong's crypto adoption could be bearish Aside from the fact that some Institutional investors could initially Be sidelined and that retail investors May not actually get access to the Crypto market for months Hong Kong's Crypto adoption could cause International issues this all has to do With the financial action task force or Fat F the aforementioned international Organization which is trying to kill Crypto with its so-called Recommendations Any country that refuses to comply with The fataf's recommendations finds itself On the gray list and eventually The Blacklist being graylisted means that it Becomes more difficult for financial Institutions in the country to interact With the Global Financial system mainly The Western one logically being Blacklisted means that it becomes Impossible for financial institutions in The country to interact with the Global Financial system Here's where things get scary last year The UAE was put on the fat F's greylist For unknown reasons Pakistan's Finance Minister recently Said that permanently Banning crypto was A condition for getting off the fatf's

Gray list well it just so happened that The UAE is also pro-crypto and has Become a global crypto hub Call me crazy but this could mean that The fat f is threatening to graylist Countries that adopt crypto too much if This is the case then Hong Kong could Face additional scrutiny from the fat F For its own crypto adoption the sfc's Emphasis on fat F compliance could be an Attempt to lower this scrutiny but wait There's more like many International Organizations the fat F appears to be Aligned with the interests of the United States consider that bitzlato a crypto Exchange that was laundering money for Dark web criminals was based in Hong Kong The Exchange and its founder were Targeted by U.S authorities earlier this Year now consider that tether the Largest stablecoin issuer is also Apparently based in Hong Kong it doesn't Take a tinfoil hat to realize that the U.S probably isn't too happy about Hong Kong embracing crypto given the Companies and exchanges it has hosted in The past and the ones it continues to Host this would explain why Hong Kong Banks reportedly continue to reject Crypto clients despite the government's Demands that they onboard them these Banks know that they risk being cut out Of the Global Financial system and they Can't trust that The Regulators are

Being objective in their criteria Remember that apparent exception for axi Infinity and the sandbox this would also Explain why Chinese state-affiliated Banks are rushing in to fill the Resulting void If you watched our video about the brics Currency being developed by the global South you'll know that China and its Allies are actively trying to get away From the Western dominated Financial System not only that but it would be Much harder for the fat F to put China On a gray list creating so much friction Between Chinese financial institutions And the rest of the Global Financial System would probably backfire on the United States this means that Chinese Banks can service crypto clients without Fear of reprisal this brings me to the Bullish side of Hong Kong's crypto Adoption aside from the fact that large Capital coins could soon see billions of Dollars of inflows and that much of this Money could subsequently find its way Into smaller altcoins Hong Kong's crypto Adoption could set the stage for China To follow suit in fact experts believe That China is using Hong Kong as a Testing ground for its own inevitable Crypto option you'll recall that recent Developments out of China underscore This possibility you should also know That crypto is technically legal to hold

In China even though it's illegal to buy Sell or trade if these experts are Correct then it begs the question of What China wants to see from Hong Kong Before it adopts cryptocurrency The answer is anyone's guess but mine is That Chinese officials want to see if It's possible to control crypto Transactions by tracking them and Regulating the on and off ramps for Fiat This is because China probably wants to Maximize the economic growth it would Get from crypto adoption while Minimizing the Financial Freedom of its Citizens what's funny is that this is What almost every other country is doing They are all terrified of losing control Over their National currencies this is Why almost every country is in the Process of rolling out a central bank Digital currency or cbdc If you've watched any of our videos About cbdc's you'll know that they will Allow the central banks and governments To control every transaction in the Economy which is why China is one of the Front Runners when it comes to Developing a cbdc of its own If you've been keeping up with cbdc Developments however you'll know that The actual adoption of cbdcs has been Slow even in China this is because the Average citizen doesn't want to use a Dystopian digital currency issued by

Their government This is where China's crypto adoption Starts to make sense as I mentioned a Few moments ago China probably wants to Maximize the economic growth it would Get from crypto adoption The thing is that economic growth Doesn't just come from inside the Country it also comes from outside this Is where I think China is looking to Leverage crypto the most for those Unfamiliar there's been lots of Speculation that the Chinese Yuan could Become the world's next Reserve currency The problem is that China has always had Very strict currency controls and these Controls will be even stricter with a Digital Yuan other countries will never Adopt this kind of currency Funnily enough the same control concerns Will eventually apply to every fiat Currency because every single fiat Currency will eventually become a cbdc This means that the world's next Reserve Currency won't be a fiat currency it Will have to be a credibly neutral Digital currency that nobody controls As it so happens some cryptocurrencies Are credibly neutral digital currencies This is why I believe that there's a Good chance that a crypto like BTC could Become the world's Reserve currency I Believe it's possible that Chinese Officials are starting to realize this

Or at least considering the possibility It's also why I believe that Hong Kong's Sudden crypto adoption isn't a Coincidence it tallies nicely with when The US started cracking down on crypto By the time the US gets its crypto Regulations in order most of the Industry will have moved to Asia and China will ultimately reap the rewards a Head start on its biggest geopolitical Rival in Practical terms this could mean Widespread crypto adoption on the Mainland it could even mean China Adopting crypto for trade with its Allies some of whom have already Signaled their interest in using crypto For such purposes From where I'm standing every possible Outcome is bullish for crypto so let's Just hope that the US doesn't start a War to defend the Dollar's Reserve Currency status And that's all for today's video if you Found it informative smash that like Button to let me know also subscribe to The channel and ping that notification Bell before you go better yet share this Video with your crypto friends and Family so that their crypto knowledge Continues to grow if you happen to be Looking for a hardware wallet or a Hurting from Trading fees check out the Coin Bureau deals page it's got the Biggest discounts on trading fees and

Thousands of dollars in bonuses the link Will be down in the description thank You all so much for watching and I'll See you next time [Music]