China's Ban on Crypto: What's Next for the Global Crypto Market?

China’s Ban on Crypto: What’s Next for the Global Crypto Market?

China’s recent all-out ‘ban’ of crypto was big news, and rightly so. In one of its biggest moves yet, the country also shut down interactions between mainland citizens and Hong Kong exchanges and even went so far as to tell Chinese founded enterprises based in offshore locations that they could not hire locally in China.

China’s move to shut down access to cryptocurrency in the mainland shook global crypto markets, albeit only temporarily. After a brief but sizable dip, major cryptocurrencies were back on track after a few days. That being said, investors have taken note and the wise are now considering which countries will best serve crypto moving forward. Many crypto investors are asking: Where to now? Which countries are still a good bet for crypto?

Hong Kong: Will it or Won’t It?

One of the pending questions around Beijing’s recent moves on crypto relates to how the mainland will deal with Hong Kong. As a major financial center in Asia, Hong Kong has long held serious status in the region as a financial hub, even after its return to China in the 1990s. The Chinese territory, in fact, has historically been a cutting-edge innovator in crypto. While Hong Kong crypto and tech sector firms recovered after a brief dip along with everyone else in the aftermath of the crackdown, moves by China against the territory still threaten any clear skies. For now, Hong Kong may hold its ground, but the future may mean serving as a testing ground for innovations that will have to happen elsewhere with the territory ceding ground to other regional tech leaders like Singapore. Only time will tell.

The Best Countries for Crypto

As crypto investors look around for safe havens, the good news is that there are still many countries in the world determined to protect the burgeoning financial industry.


Not surprisingly, the country that built its reputation on letting financial institutions do as they will has become something of a safe space for crypto. The central European nation has enacted only very limited regulations on the crypto space. Many cantons, too, have given crypto investors some serious breaks when it comes to taxes. Given Switzerland’s history, it’s a safe bet that the country will continue to stand by crypto.


For investors with long-term interests in crypto, Germany is still proving to be a safe haven. The European economic giant doesn’t levy any taxes against crypto held over a year, making it a good choice for the forward-thinking investor.


Historically, Singapore has taken a very balanced approach in its regulation of crypto, in keeping with its approach to business in general. With Hong Kong’s hold as the regional expert on crypto waning, it is very likely that much of that momentum will shift to this wealthy city state. A cryptocurrency exchange could well find solace with this Asian financial leader.

Additional Options – The Smaller Countries

In addition to economic heavy hitters, there are several smaller countries around the world that are positioning themselves as advantageous to savvy crypto investors. Small countries such as Cyprus, Bermuda, and Malta are all offering limited regulations and tax breaks for crypto as of today.

The news out of China may have created a shift for the crypto economy, but things are still going strong. With the wealth of opportunities out there and the many countries interested in protecting the space, crypto investors can feel pretty confident sticking with crypto for years to come.