Whatever was said in this Chinese state-owned media outlet video is historic and this could trigger a crypto bull run on June 1. Could this be a bull trap? Even if it is, you can make big profits.
But on which coins and when? Let’s quickly get into the details and the list of coins for the next bullrun.
How can China Activate the Crypt Bull Run?
So here is the big news – Hong Kong has announced retail investors can now trade cryptocurrencies under its new regulatory framework for the sector. This starts on June 1. This move is part of an effort to establish Hongkong city as a hub for digital assets, even as other regions in Asia experience clashes between the industry and regulators.
This definitely is a positive sign for crypto growth in Asia. With this, we could see a huge inflow of funds into the crypto industry and that could trigger a new bull run. Not only me, but even CZ feels that this recent coverage by CCTV China is a big deal and has historically led to bull runs.
Source: Twitter
The agency stuck with a plan to let individual investors buy and sell bigger tokens like Bitcoin and Ether. This starts on June 1 when a new licensing regime for virtual-asset platforms begins.
So these could really pump hard. But what about altcoins? And which ones will be that? I will come that to shortly but first let’s see how China has played with crypto in the past. Because can we really trust China with this?
China and its History with Crypto
In 2011, China’s first Bitcoin exchange, BTC China, was launched and started accepting cryptocurrency payments in 2013. Then, some of the world’s largest cryptocurrency exchanges, including Huobi and OKCoin, launched in China.
In 2017, the Chinese government cracked down on cryptocurrencies and banned initial coin offerings (ICOs). This forced the closure of all cryptocurrency exchanges in China. Since then, Chinese exchanges and cryptocurrencies have been moving to other countries and continued to make an impact on the global market.
Source: Twitter
What is the Catch this Time?
The caveat is The SFC is issuing licenses to only two firms so far. Hong Kong government requires tokens purchased by retail investors to be included in two major indices (minimum). These coins could be approved first:
- Bitcoin.
- Ethereum.
- Litecoin.
- Bitcoin Cash.
- Polkadot.
- Solana.
- Cardano.
- Avalanche.
- Polygon.
- Chainlink.
Keep in mind, exchanges have to follow certain rules and regulations to maintain their license and avoid fraud risks. They need to report their finances monthly, disclose their assets and liabilities, and maintain a minimum capital requirement. More importantly, there is a 12-month cooling-off period before tokens can be listed on regulated exchanges.
How does China Benefit from this?
China is still the world’s 2nd-largest Bitcoin miner, despite banning Bitcoin in 2021.
So, Hong Kong’s proposal to allow retail investors to trade cryptocurrencies will bring more investors to the market, increasing the demand for Chinese tokens, which are becoming more popular among investors. We’ve already seen Chinese crypto projects have emerged as top performers this year, due to the increased liquidity provisions. China coins are exploding post this update by SFC.
Source: Twitter.
Hong Kong could be viewed by China as an experiment to observe crypto policy. If it works, it may lead to a more relaxed policy from China. With uncertain US regulations, Asian nations could see this as an opportunity to welcome web3 talent.
How the Crypto Industry will React to this?
CZ anticipates that Hong Kong-based banks will begin supporting cryptocurrency, which could lead to a migration of funds to the region. So, you must keep an eye on these coins:
We may see some projects announce plans to partner with local initiatives/outline plans to target the Asian market. This is a list of crypto tokens you should be on the lookout for featuring Chinese/Asian-related crypto protocols to track any significant price movements.
Now, what you need to do is keep a close eye on these Chinese projects: Neo, BitDAO, VeChain, Conflux Network, IRIS Network, and OKX.
⬆️ For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.
⬆️ Our popular Altcoin Buzz Access group generates tons of alpha for our subscribers. And for a limited time, it’s Free. Click the link and join the conversation today.
