Bitcoin News Today: Hong Kong’s Crypto Ambitions Tangle With Political Realities

Two senior figures in China Hong Kong have withdrawn from the Bitcoin Asia 2025 conference, where Eric Trump, the son of U.S. President Donald Trump, is set to speak. According to sources, they received an instruction not to attend or interact with the American businessman. Eric Yip Chee-hang, executive director of the city's Securities and Futures Commission (SFC), and legislator Johnny Ng Kit-chong, a technology entrepreneur, were both removed from the event’s speaker list, according to an investigation by South China Morning Post [1]. The names of both individuals had previously appeared on the event’s website as of July 14, following a July 8 announcement that Eric Trump would discuss bitcoin’s “long-term potential” and its implications for global finance [1].

The decision appears to reflect broader sensitivities surrounding diplomatic and political relationships, with one source noting that “we all understood the reason” for the instruction [1]. The source did not disclose who issued the directive, but the timing of the withdrawals suggests a coordinated response to the participation of Eric Trump, a figure whose presence could draw attention in the context of U.S.-China relations and local governance dynamics. While the conference remains a platform for discussing crypto innovation and adoption in Asia, the withdrawals highlight the complex interplay between financial technology and political considerations in China Hong Kong.

Meanwhile, China Hong Kong continues to solidify its regulatory framework for digital assets. As of January 1, 2026, banks in the region will be required to maintain a 1:1 capital ratio for their exposure to permissionless cryptocurrencies such as Bitcoin and Ethereum. This means that for every dollar’s worth of digital assets a bank holds, it must have an equivalent in its capital reserves. The Hong Kong Monetary Authority (HKMA) announced the rule as part of its effort to create a stable and regulated environment for financial institutions engaging with digital assets [3]. By requiring direct capital backing, the HKMA aims to reduce the systemic risks associated with crypto volatility and reinforce confidence in the broader financial system.

This regulatory development is seen as a key part of Hong Kong’s strategy to position itself as a global cryptocurrency hub. The rule signals a proactive approach to integrating crypto into the existing financial infrastructure, which could make the region an attractive destination for firms seeking a compliant and forward-looking market. The move follows strong performance by Hong Kong’s recently launched cryptocurrency ETFs, which saw gains of over 9% on the day of the announcement [3]. This suggests that both institutional and retail investors are increasingly open to regulated crypto products in the region.

On the national level, China’s approach to digital currency remains firmly centralized. The country has historically maintained a cautious stance toward cryptocurrencies, banning most crypto-related financial activities as of 2021 [2]. However, it has embraced blockchain technology, positioning it as a strategic national priority. The government’s focus is on developing a tightly controlled digital infrastructure that enables state oversight, rather than promoting the decentralized nature of cryptocurrencies like Bitcoin. This has led to the creation of the digital renminbi (e-CNY), a central bank digital currency (CBDC) intended to serve as a regulated alternative to private stablecoins and traditional cash [2].

China Hong Kong, however, has adopted a more experimental stance, with the region recently passing a landmark Stablecoins Bill in May 2025 [2]. This legislation allows licensed entities to issue fiat-backed stablecoins, including those pegged to the Hong Kong dollar and the offshore renminbi (CNH). The move reflects a growing appetite for innovation within a controlled environment, with oversight and licensing falling under the HKMA. This regulatory shift is seen as a way to explore the potential of stablecoins without compromising mainland capital controls [2]. For now, China Hong Kong remains a key testing ground for new financial technologies underpinned by a broader vision of financial sovereignty and stability.

The emergence of dollar-backed stablecoins in the U.S., driven by the GENIUS Act, is expected to reshape the global monetary landscape and challenge China’s efforts to promote the international use of the renminbi. Analysts note that such stablecoins could offer a new channel for transacting in dollars that is difficult to monitor and control, posing a potential threat to China’s financial repression model [2]. As a result, there is growing interest among Chinese scholars and businesses in developing renminbi-backed stablecoins, which could serve as a counterbalance to dollar-based alternatives while maintaining state oversight [2]. This suggests that the future of stablecoins in China will likely be shaped by a balance between innovation and control, with the government seeking to leverage blockchain to reinforce, rather than weaken, its authority.

Source:

[1] Hong Kong official and lawmaker pull out of Bitcoin Asia 2025 featuring Eric Trump (https://www.scmp.com/news/hong-kong/politics/article/3323388/hong-kong-official-and-lawmaker-pull-out-bitcoin-asia-2025-featuring-eric-trump)

[2] Why China Is Spooked by Dollar Stablecoins and How It Will Respond (https://www.cfr.org/article/why-china-spooked-dollar-stablecoins-and-how-it-will-respond)

[3] Hong Kong's New Crypto Rules Aim For Market Stability (https://coinidol.com/hong-kong-crypto-rules/)