Caixin: Various types of Chinese-funded institutions in Hong Kong are explicitly required to scale back their encryption asset businesses, and the financial treasury company model is likely to be restricted.

On September 24, Caixin published an article revealing that various institutions were required to shrink their Crypto Assets businesses in Hong Kong. It pointed out that internet platforms, Chinese brokers, and Chinese banks in Hong Kong were all asked to temporarily suspend various businesses related to Crypto Assets, including investment, trading, issuance of RWA, stablecoins, etc. Among these, brokers who obtained the qualification to "provide Virtual Money trading services" became the focus of attention because clients could directly trade Bitcoin, Ether, and USD in their accounts. From the perspective of asset substance, Hong Kong divides Virtual Money into securities-type Virtual Money and non-securities-type Virtual Money. It is reported that the "financial and treasury company" model will be restricted. In this round of innovation frenzy in Virtual Money, the model of using "financial and treasury company" for leveraged investments in Crypto Assets has been rapidly replicated. Many Chinese enterprises listed in Hong Kong and the U.S. announced the purchase of Bitcoin, Ethereum, and other Crypto Assets, hoping to profit from both stock prices and coin prices. Now, this model is likely to be restricted.