Potential of the Crypto Market in China

Abstract

This paper provides an overview of cryptocurrencies, their current status in China and Hong Kong, a prediction of their impact on Chinese enterprises and financial markets, and describes the impact of government policies. It also discusses suggestions for changing the regulatory paradigm of digital cryptocurrencies in China. The study aims to explore the best policy direction for the development of the cryptocurrency market in mainland China. Key points include the strict stance of the Chinese government towards cryptocurrencies, the growing interest in cryptocurrencies in Hong Kong, and the impact of government policies on the cryptocurrency market in both regions. It also highlights the need for China to adjust its policies to benefit from the development of digital technology. Additionally, it suggests policy recommendations for the future development of the cryptocurrency market in mainland China, such as prudent supervision, technology-driven supervision, and strengthening the security requirements of digital cryptocurrency service providers.