Whatever was stated in this Chinese state-owned media outlet video is historic and this could trigger a cryptocurrency bull run on June 1. Could this be a bull trap? Even if it is, you can make big profits.
Onย theย otherย hand, on which coins and when? Letโs quickly get into the details and the list of coins for theย following bullrun.
How can China Activate the Crypt Bull Run?
So here is the big news โ Hong Kong has announced retail investors can now trade digitalย currencies under its new regulatory framework for the sector. This starts on June 1. This move is part of an attemptย to setย up Hongkong city as a hub for digital assets, even as other regions in Asia experience clashes betwixt the industry and regulatoryย authorities.
This definitely is a positive sign for cryptocurrency growth in Asia. With this, we could see a huge inflow of funds into the cryptocurrency industry and that could trigger a new bull run. Not only me, but even CZ feels that this recent coverage by CCTV China is a big deal and has historically led to bull runs.
Source: Twitter
The agency stuck with a intendย to let individual investors buy and sell bigger cryptoย tokens like Bitcoinย (BTC) and Ether. This starts on June 1 when a new licensing regime for virtual- investment platforms begins.
So these could really pump hard. Onย theย otherย hand, what about altcoins? And which ones will be that? I will come that to shortly but 1st letโs see how China has played with cryptocurrency in the past. Because can we really trust China with this?
China and its History with Cryptocurrency
In 2011, Chinaโs 1st Bitcoinย (BTC) exchange, Bitcoin China, was launched and started accepting digitalย currency payments in 2013. Then,ย some of the worldโs largest digitalย currency exchanges, including Huobi and OKCoin, launched in China.
In 2017, the Chinese Government cracked down on digitalย currencies and banned initial coin offerings (ICOs). This forced the closure of all digitalย currency exchanges in China. Everย since, Chinese exchanges and digitalย currencies have been moving to other countries and continued to make an impact on the worldwide market.
Source: Twitter
What is the Catch this Time?
The caveat is The SFC is issuing licenses to only two corporations so far. Hong Kong Government requires cryptoย tokens purchased by retail investors to be included in two major indices (minimum). These coins mayย be approved first:
- Bitcoin.
- Ethereum.
- Litecoin.
- Bitcoinย (BTC) Cash.
- Polkadot.
- Solana.
- Cardano.
- Avalanche.
- Polygon.
- Chainlink.
Keep in mind, exchanges have to follow certain regulations and regulations toย sustain their license and avoid fraud dangers. Theyย must to report their finances monthly, disclose their assets and liabilities, and maintain a minimum financialย resources requirement. More significantly, thereย is a 12- 30ย days cooling-off period before cryptoย tokens can be listed on regulated exchanges.
How does China Takeย advantageย of this?
China isย still the worldโs 2nd- largest Bitcoinย (BTC) miner, regardlessย of banning Bitcoinย (BTC) in 2021.ย
And, Hong Kongโs proposition to allow retail investors to trade digitalย currencies will attract more investors to the market, increasing the demand for Chinese cryptoย tokens, which are becoming more trending between investors. Weโve already seen Chinese cryptocurrency projects have resurfaced as top performers inย theย year, owingย to the increased liquidity provisions. China coins are exploding post this update by SFC.
Source: Twitter.
Hong Kong mayย be viewed by China as an experiment to observe cryptocurrency policy. If it works, it may lead to a more relaxed policy from China. With uncertain Unitedย States regulations, Asian countries could see this as aย chance to welcome Webย 3.0 talent.
How the Cryptocurrency Industry will React to this?
CZ anticipates that Hong Kong-based banks will begin supporting digitalย currency, which could lead to a migration of funds to the region. So,ย youย need keep an eye on these coins:
We may see some projects reveal intendsย to partner with local initiatives/outline intendsย to target the Asian market. This is a list of cryptocurrency tokens you should be on the lookout for featuring Chinese/Asian-related cryptocurrency protocols to track any wholeย lotย of price movements.
ย Now, what youย must to do isย keep a close eye on these Chinese projects:ย Neo, BitDAO, VeChain, Conflux Network, IRIS Network, and OKX.
