Donald Trump announced that he has signed an executive order bringing in new rules blocking the US property of anyone who undermines democratic institutions in Hong Kong.
So that sounds like an attempt to protect Hong Kong's freedoms.
But on the other hand the order revokes license exceptions for exports from the US to Hong Kong. I boil that down to meaning now anyone wanting to export from the US to Hong Kong will have to go through an administrative process that is slower and more time consuming.
The order also eliminates the preference for Hong Kong passport holders over Chinese.
For decades Hong Kong has been an ideal destination for US companies to setup and do business in Asia. In recent years this has included countless crypto startups.
The passport change won't affect dual citizens since they will still have their US passport, but it will affect Hong Kong natives who only have a Hong Kong passport. They are now treated the same as a Chinese passport holder.
I can only see the situation in Hong Kong going in one direction. I can't see how the glacier can be stopped from continuing to slide down the mountain. When the juggernaut that is the Chinese government decide to do something, they are not easily deterred.
What is the long term impact of Hong Kong's freedoms and privilages being absorbed by China?
Specifically what impact is this going to have on crypto startups?
Please share your thoughts with me in the comments below.
Crypto startups will find a new safe-haven, it will hurt them a bit, but they'll make it. They can operate anywhere with an internet connection and the freedom to do so. It's very unfortunate what's happening to Hong Kong and the people there. Hong Kong on its own could not win a civil war against China.. But if enough global forces stand with Hong Kong and against China, perhaps there's still hope.
Money is the problem. No one wants to break ranks, piss China off and then lose money.