Cryptocurrency trading may be banned in mainland China, but the Hong Kong financial regulator Securities and Futures Commission (SFC) just issued its first cryptocurrency exchange license to OSL Digital Securities, a unit of Fidelity- backed BC group. The company applies for a license back in November 2019 due to the new rules requiring exchanges to legalize their businesses that were adopted in Hong Kong last year. OSL Digital is not the only company who applies for such license, but it is, indeed, the first to receive it. The CEO of BC Group issued a statement, saying that one of the benefits of being licensed is that regulated institutions will be able to reduce their risk by being able to engage with other regulated entities – the crypto exchanges. This is good, but how long will it last before China forces its mainland ban on crypto trading the way it's forcing other legislation on Hong Kong?
Not very long. Wait until there is a capital flee from mainland China via the crypto exchanges in Hong Kong, ban it comes. Congratulations to BC Group but be prepared for the worst!