With the rapid development of digital assets and blockchain technology, countries have shown different regulatory attitudes towards crypto assets. The regulatory logic of digital currencies in mainland China and Hong Kong is quite different. Government of mainland China has clarified the legal status of digital currencies through various circulars and announcements. It has adopted a strict regulatory attitude towards digital currencies, completely banning illegal activities related to Initial Coin Offerings and virtual currencies. Hong Kong has always been open and inclusive to new things and innovative financial models, and its attitude has changed from the initial neutral observation to inclusive acceptance and active supervision. Hong Kong is now implementing a new VASP licensing regime, with a dual licensing requirement for operators of securities-based tokens and a register of licenses available for public inspection. This article will analyse the latest developments in the regulation of crypto assets in mainland China and Hong Kong.
