China’s Crypto Re-Entry May Begin with Stablecoins, Potentially Leading to Bitcoin Adoption, Says Dr. Xiao Feng

Key Points

1. China's re-engagement with cryptocurrency will begin with payment tools like stablecoins, followed by real-world assets (RWA) on permissionless public blockchains.

2. Hong Kong's strict focus on Anti-Money Laundering (AML) compliance and its 'One Country, Two Systems' framework position it as a bridge for digital finance in Asia.

3. Stablecoins are highlighted as a medium for real-time, peer-to-peer financial transactions, playing a key role in blockchain financial infrastructure.

4. Compliance, especially AML, is critical for market trust and expansion in the crypto sector.

5. Hong Kong's regulatory environment supports sustainable growth in digital finance, balancing innovation with compliance.