Crypto entrepreneur Justin Sun has talked up the potential of China's crypto industry, despite the country's hardline stance on digital assets.
In a twitter thread on Monday, the Tron founder and Huobi advisor told his followers that China's move to tax crypto transactions is a sign of its "increasing embrace of cryptocurrencies".
"The tax policy is expected to boost the adoption of cryptocurrencies in the country, as it provides a clear regulatory framework for individuals and businesses," Sun explained.
"Both TRON and Huobi have a strong focus on innovation and have been instrumental in driving the growth and development of blockchain technology in China," he added.
According to Sun, China has a "strong record" in crypto adoption and innovation, and possesses a healthy amount of traders and developers. He also claimed that China's dominance in the space is becoming "more and more apparent", and signalled his intent to move to Hong Kong to "be closer to the action and take advantage of the opportunities in Asia market".
Exactly! That's why I will move to Hong Kong. Chinese 🇨🇳crypto market on the rise! 🚀Experts predict that China will dominate the next crypto bull market, with #TRON and @HuobiGlobal leading the charge in Hong Kong development. https://t.co/CaX2Yp5EZA— H.E. Justin Sun🇬🇩🇩🇲🔥₮ (@justinsuntron) January 29, 2023
Huobi was one of the first Chinese crypto firms to shutter its operations in the country amid Beijing’s harsh crackdowns on the industry in 2021. The exchange is now based out of Seychelles.
China vs Hong Kong
China remains one of the world’s strongest cryptocurrency markets despite its government’s harsh stance on the industry in recent years. Recent data from Chainalysis shows that trading volume within China remains “healthy” across both centralised and decentralised platforms, despite the PBOC (People’s Bank of China) implementing a blanket ban on cryptocurrency transactions since September 2021.
On the other hand, Hong Kong has been rapidly advancing its crypto regulations, and has said that it will chart its own course that is distinct from the approach taken by Beijing.
Among the city’s plans are a new licensing regime for virtual asset service providers, tokenization of green bonds, stablecoins, experimental NFT offerings, and retail trading of digital assets. It is also considering property rights for tokenized assets and the legality of smart contracts, so as to provide a solid legal foundation for their development.