Hong Kong and China May Cooperate to Expand Crypto Sector

• Hong Kong and China may cooperate on stablecoins and blockchain
• Industry calls for joint standards for crypto and fintech in Asia
• Offshore Yuan Stablecoin Could Strengthen Hong Kong's Position

During the Global Blockchain Summit in Shanghai, industry leaders highlighted the need for greater collaboration between Hong Kong and mainland China to drive growth in the cryptocurrency and fintech markets in Asia. Despite China's ongoing ban on crypto trading since 2021, growing interest in yuan-pegged stablecoins and new joint initiatives suggest that a rapprochement between the two regions may be on the horizon.

According to a report by South China Morning Post , experts said that Hong Kong and Beijing could join forces to establish regulatory and technological standards, fostering a more globally competitive ecosystem. Hong Kong, which passed its Stablecoin Ordinance in August, has been consolidating itself as a regional hub for digital assets, while China is betting on expanding its digital finance and artificial intelligence-based payment systems.

Despite these advances, both regions still lag behind other Asian countries in crypto adoption. Chainalysis Data show that India, Japan, Vietnam, and Indonesia lead the ranking of value moved in cryptocurrency services, while Hong Kong and China appear only in 17th place.

Xiao Feng, president of Wanxiang Blockchain and Hashkey Group, advocated for the creation of "more standards and rules" for the industry, noting that "blockchain technology has moved from the early stages of development to the stage of large-scale applications." He noted that interest in the event was so high that tickets sold out days before the event began—something that "hasn't happened in years."

Rachel Lee, Director of Blockchain and Digital Assets at Hong Kong's Cyberport, stated that she seeks to strengthen ties with mainland Chinese stakeholders to support the joint development of the industry. Lily Liu, president of the Solana Foundation, stated that the organization is investing in China's developer ecosystem, citing the country as a "leader in digital payments."

A recent report from Hong Kong's Legislative Council also indicated that the region is seeking central government support to issue an offshore renminbi-backed stablecoin. Such a move could cement Hong Kong as a global hub for digital asset innovation, while China would gain a new tool to expand its monetary influence and promote international trade settlement in local currency.