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Major Chinese Internet Companies May Exit Cryptocurrency-Related Businesses

Major Chinese Internet Companies May Exit Cryptocurrency-Related Businesses

Reports suggest that central state-owned enterprises and Hong Kong branches of Chinese banks could also withdraw from Hong Kong's stablecoin license application process.

Fact Check
The evidence strongly supports the statement. Source 9 explicitly mentions 'China's ban on cryptocurrencies.' A government ban would legally compel major internet companies to cease such operations to remain compliant. This is reinforced by the context of a wider 'regulatory crackdown on China's tech giants' mentioned in Source 7, making compliance and subsequent exit from the cryptocurrency sector highly probable.
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Summary

Caixin reports on Sept. 11 that major Chinese internet companies might gradually exit the cryptocurrency sector, with several central state-owned enterprises and Hong Kong units of Chinese banks also expected to be absent from the ongoing Hong Kong stablecoin license application process.

Terms & Concepts
  • Stablecoin License: A regulatory framework that allows entities to issue stablecoins, typically pegged to a reserve asset like a fiat currency, in compliance with local laws.