China's Central Bank Reiterates Crypto Ban, Hong Kong Shares Fall

Shares of cryptocurrency-related companies in Hong Kong fell sharply on Monday. The drop followed a renewed warning from China's central bank against digital asset trading. The People's Bank of China (PBOC) stated that all cryptocurrency-related activities remain illegal in mainland China. It specifically warned against online services provided by offshore exchanges to Chinese residents. The bank called such activities "illegal financial activity." This restatement of China's long-standing ban caused immediate market reaction. Key Hong Kong-listed firms with crypto ties saw significant declines. For example, BC Technology Group, which operates a digital asset platform, saw its shares drop over 14%. The PBOC's warning highlights a regulatory divide. While mainland China enforces a strict ban, Hong Kong has moved to establish itself as a regulated hub for digital assets. The city began licensing crypto exchanges for retail trading in 2023. Market analysts suggest the announcement serves as a clear reminder. Despite Hong Kong's evolving rules, Chinese authorities maintain a firm prohibition on crypto trading within the mainland.