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China emphasizes digital asset regulation amid Hong Kong's licensing developments
The People's Bank of China (PBOC) emphasized the need for digital asset regulation in its 2024 financial stability report, noting that 51 jurisdictions have imposed bans or restrictions on digital assets. While mainland China maintains a strict prohibition, Hong Kong is advancing a digital asset licensing regime, allowing retail trading and enhancing regulations for financial institutions. The PBOC is also working on improving international regulatory frameworks for digital assets, acknowledging potential risks as cryptocurrency applications grow.
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