At the start of this month, James Lau, Hong Kong’s Secretary for Financial Services and Treasury, informed the Legislative Council that the purchase of mining equipment falls under the Trade Descriptions Ordinance. This move places restrictions on who can mine cryptocurrencies like bitcoin. But, does it also signal a change in attitude towards crypto by the Hong Kong authorities?
Hong Kong is a center for fintech innovation and a significant market within the blockchain economy. As a Special Administrative Region, it benefits from different legislative rules than Mainland China – which shows in their liberal approach to cryptocurrency. At present, there are no statutory instruments to regulate cryptocurrencies directly. However, Hong Kong legislators are working towards changing this.