CPIC Investment Management got optimum support from the Chinese Government for launching two cryptocurrencies related to investment banking and staking.
A recent report suggests that a significant state-owned corporation in China is taking a more positive stance towards the cryptocurrency sector than was previously assumed.
According to 36Kr, a local technology news outlet, CPIC Investment Management – a subsidiary of China Pacific Insurance (CPI) – is partnering with investment firm Waterdrip Capital to establish two cryptocurrency investment funds.
CPI is the second largest Chinese Insurance firm in mainland China. The Chinese central Government, the Government of Shanghai City, and China Securities Finance also back it.
These cryptos are Pacific Waterdrip Digital Asset Fund I and Pacific Waterdrip Digital Asset Fund II. These are the Venture Capital Funds that will handle proof-of-stake digital assets.
Key Takeaways:
- Waterdrip Capital, an international investment firm, may provide financial backing for blockchain-related initiatives and cryptocurrency firms.
- The company was found in 2017 and had a reputation for supporting the Chinese cryptocurrency mining business.
- Waterdrip Capital has also invested in Peaq, a decentralized Web3 network built on Polkadot.
- Both institutional investors and wealthy individuals will target for investment by two funds created by Waterdrip Capital.
Waterdrip Capital tweets on Monday that the launch of two joint cryptocurrency funds in partnership with CPIC Investment Management is link to Hong Kong’s adoption of incentive policies for virtual assets. The tweet was in response to the announcement of the partnership to create the funds.
The timing of this disclosure coincides with the Hong Kong government’s increasing focus on building a domestic cryptocurrency infrastructure. This effort aims to set Hong Kong’s approach to cryptocurrency regulation apart from China’s upcoming ban on cryptocurrencies.
As of 2021, China plans to impose a ban on cryptocurrencies. Meanwhile, rumors emerged in late March that state-owned Chinese banks expressed interest in various cryptocurrency firms headquartered in Hong Kong.
China’s Cryptocurrency Landscape Shifts as State-Owned Corporation Embraces Crypto Funds
In the past few years, we have seen that the Government of China has made harsh decisions against prohibiting Initial Coin Offerings, crypto trading platforms, mining operations, and other crypto-related activities.
The state-owned corporation has decided to offer crypto funds and point to a more bullish picture of this sector. China has been working hard to develop its own digital Yuan and undergoing different testing periods elsewhere.
China is working intending to become a leader in this digital economy. They want to end up in the relevant US currency, and their first step towards this initiative is the creation of the digital Yuan.
Despite China’s views on cryptocurrencies, the state-owned corporation launched new cryptocurrencies. It indicates that China’s views are shifting towards cryptocurrencies. It is still being determined whether China will follow this example and form its crypto or if it is just an isolated incident.
Bottom Line
In conclusion, the launch of two cryptocurrency investment funds by CPIC Investment Management and Waterdrip Capital, a subsidiary of China Pacific Insurance, suggests that China’s stance towards cryptocurrencies may be shifting. Despite the country’s plans to ban cryptocurrencies, this move by a state-owned corporation indicates a more positive outlook for the cryptocurrency sector in China.
The timing of this announcement also coincides with Hong Kong’s efforts to build a domestic cryptocurrency infrastructure and set itself apart from China’s regulatory approach. It remains to be seen whether China will follow this example and create its cryptocurrency or if this is just an isolated incident.
FAQs
What are the two cryptocurrency investment funds launch by CPIC Investment Management and Waterdrip Capital?
CPIC Investment Management and Waterdrip Capital have launched two cryptocurrency investment funds, Pacific Waterdrip Digital Asset Fund I and Pacific Waterdrip Digital Asset Fund II. These are venture capital funds that will handle proof-of-stake digital assets.
Who is CPIC Investment Management?
CPIC Investment Management is a subsidiary of China Pacific Insurance (CPI), the second-largest insurance firm in mainland China. The Chinese central Government, the Government of Shanghai City, and China Securities Finance also back it.
Who is Waterdrip Capital?
Waterdrip Capital is an international investment firm that provides financial backing for blockchain-related initiatives and cryptocurrency firms. It was found in 2017 and had a reputation for supporting the Chinese cryptocurrency mining business. Waterdrip Capital has also invested in Peaq, a decentralized Web3 network built on Polkadot.
What is China’s stance toward cryptocurrencies?
China has made harsh decisions against cryptocurrencies in the past few years. Prohibiting initial coin offerings, crypto trading platforms, mining operations, and other crypto-related activities. As of 2021, China plans to impose a ban on cryptocurrencies.
However, the launch of two cryptocurrency investment funds by a state-owned corporation suggests a shift towards a more positive outlook for the cryptocurrency sector in China.
What is Hong Kong’s approach to cryptocurrency regulation?
Hong Kong focuses on building a domestic cryptocurrency infrastructure and setting itself apart from China’s regulatory approach to cryptocurrencies. This effort aims to attract cryptocurrency-related businesses and investors to Hong Kong.
