The People's Bank of China (PBOC) has released its Financial Stability Report 2024, highlighting Hong Kong's proactive approach to crypto asset licensing. Despite a global trend where 51 countries and regions have imposed bans on crypto assets, Hong Kong is exploring a regulatory framework that allows for the licensing of crypto activities. This initiative is seen as a significant move to balance innovation and regulation in the crypto space, particularly as trading remains prohibited on the mainland. The PBOC's report underscores Hong Kong's unique position as a potential hub for crypto activities under the watchful eye of Chinese authorities, while the mainland continues to tighten its grip on crypto trading. Recent measures by China's forex regulator require banks to report risky trades, including those involving cryptocurrency, as part of broader efforts to curb illegal trading activities.