June 1: Chinas Crypto Move – Bullish or Bearish?

June 1: Chinas Crypto Move - Bullish or Bearish?


Hong Kong’s announcement to allow retail investors to trade cryptocurrencies under its new regulatory framework, starting on June 1, could trigger a new crypto bull run, with potential big profits, and this article discusses the history of China’s involvement with crypto, the catch this time, and which Chinese projects to keep an eye on.

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.

On the other hand, on which coins and when? Let’s quickly get into the details and the list of coins for the following bullrun.

How can China Activate the Crypt Bull Run?

So here is the big news – Hong Kong has announced retail investors can now trade digital currencies under its new regulatory framework for the sector. This starts on June 1. This move is part of an attempt to set up Hongkong city as a hub for digital assets, even as other regions in Asia experience clashes betwixt the industry and regulatory 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 intend to let individual investors buy and sell bigger crypto tokens like Bitcoin (BTC) and Ether. This starts on June 1 when a new licensing regime for virtual- investment platforms begins.

So these could really pump hard. On the other hand, what about altcoins? And which ones will be that? I will come that to shortly but 1st let’s 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, China’s 1st Bitcoin (BTC) exchange, Bitcoin China, was launched and started accepting digital currency payments in 2013. Then, some of the world’s largest digital currency exchanges, including Huobi and OKCoin, launched in China.

In 2017, the Chinese Government cracked down on digital currencies and banned initial coin offerings (ICOs). This forced the closure of all digital currency exchanges in China. Ever since, Chinese exchanges and digital currencies have been moving to other countries and continued to make an impact on the worldwide market.

china bitcoin bull run

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 crypto tokens purchased by retail investors to be included in two major indices (minimum). These coins may be approved first:

  • Bitcoin.
  • Ethereum.
  • Litecoin.
  • Bitcoin (BTC) Cash.
  • Polkadot.
  • Solana.
  • Cardano.
  • Avalanche.
  • Polygon.
  • Chainlink.
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Keep in mind, exchanges have to follow certain regulations and regulations to sustain their license and avoid fraud dangers. They must to report their finances monthly, disclose their assets and liabilities, and maintain a minimum financial resources requirement. More significantly, there is a 12- 30 days cooling-off period before crypto tokens can be listed on regulated exchanges.

How does China Take advantage of this?

China is still the world’s 2nd- largest Bitcoin (BTC) miner, regardless of banning Bitcoin (BTC) in 2021. 

And, Hong Kong’s proposition to allow retail investors to trade digital currencies will attract more investors to the market, increasing the demand for Chinese crypto tokens, which are becoming more trending between investors. We’ve already seen Chinese cryptocurrency projects have resurfaced as top performers in the year, owing to the increased liquidity provisions. China coins are exploding post this update by SFC.

SFC list of accepted coins

Source: Twitter.

Hong Kong may 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 United States regulations, Asian countries could see this as a chance to welcome Web 3.0 talent.

How the Cryptocurrency Industry will React to this?

CZ anticipates that Hong Kong-based banks will begin supporting digital currency, which could lead to a migration of funds to the region. So,  you need keep an eye on these coins:

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We may see some projects reveal intends to partner with local initiatives/outline intends 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 whole lot of price movements.

 Now, what you must to do is keep a close eye on these Chinese projects: Neo, BitDAO, VeChain, Conflux Network, IRIS Network, and OKX.



Source

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