It is reported that Hong Kong's ambition to become an encrypted currency lending center has obtained the subtle application of the relevant Chinese authorities, which may be called a sharp contrast to the strong anti-encryption views of the mainland.

In October last year, the Hong Kong government came up with the idea of issuing its own laws to control encryption and allowing retail investors to "invest directly in virtual assets", which may be in sharp contrast to China's general encryption restrictions.

According to people familiar with the matter, senior officials in Beijing did not openly oppose the idea. According to Bloomberg News on Feb. 20, it is understood that the China Liaison Office means that it has been attending password parties frequently in Hong Kong to try to grasp what has happened.

According to people familiar with the matter, so far, they have been friendly to senior officials in Beijing on this matter. Network operators of local password companies feel that Beijing is likely to be open-minded, albeit subtly, about using Hong Kong as a password lab.

Hong Kong is a special administrative region of China, allowing it to have its own laws, regulations and governance. The former British colony was handed over to China in 1997 after Beijing ensured that it would not be easy for China to interfere with Hong Kong's economic and political system within 50 years. This performance pledge is called the "one country, two systems" standard.

The report quoted Knicks Chen, a deputy to the National people's Congress and digital currency master, as saying that as long as it does not violate the moral bottom line and does not threaten China's financial stability, the city can do its own yearning at will.

On February 20th, Hong Kong's Securities and Futures Trading Commission outlined a new encrypted license plate regulation that proposes that all centralized trading centers operating in the area must be approved by regulators.

It also recommended that investor traders be allowed to trade in certified encrypted virtual currencies, saying public feedback highlighted that rejecting access to the encryption market could drive Hong Kong people to buy and sell transactions on unregulated overseas platforms.

A new control measure has encouraged many password companies to seek expansion into Hong Kong. Recently, Hong Kong trading centre Hobbie Worldwide indicated that it will look for Hong Kong license plates and plans to set up a new trading center in Hong Kong, dedicated to investors and high net worth individuals.