Monday, July 22, 2024

Hong Kong Reaffirms Commitment to Become Regional Crypto Hub

Hong Kong has reaffirmed its commitment to become a regional crypto hub in following the collapse of cryptocurrency exchange FTX. “As certain crypto exchanges collapsed one after another, Hong Kong became a quality standing point for digital asset corporates,” said a top government official.

Hong Kong Aims to Become Regional Crypto Hub

Hong Kong Financial Secretary Paul Chan Mo-po reaffirmed the city’s crypto commitment at a web3 summit in Cyberport Monday.

Emphasizing that Hong Kong remains committed to becoming a regional crypto hub, the financial secretary described:

As certain crypto exchanges collapsed one after another, Hong Kong became a quality standing point for digital asset corporates.

He added that Hong Kong has a robust regulatory framework for crypto that “matches international norms and standards.”

Joseph Chan, the undersecretary for financial services and the Treasury for the government of Hong Kong, revealed at the same event that the city is preparing to issue more licenses for digital asset trading firms. Moreover, it is planning a consultation on crypto platforms to explore the potential for retail participation in the industry.

Hong Kong is pushing to become a regional crypto hub despite the collapse of crypto exchange FTX and several other crypto firms filing for bankruptcy. Last month, the city’s Securities and Futures Commission (SFC) issued a statement warning about the risks associated with crypto platforms offering deposits, savings, earnings, and staking services.

After years of strict regulations, Hong Kong is now pushing to make it easier for retail investors to trade crypto assets. Elizabeth Wong, the SFC’s director of licensing and head of the fintech unit, said in October last year: “We’ve had four years of experience in regulating this industry … We think that this may be actually a good time to really think carefully about whether we will continue with this professional investor-only requirement.”

In November last year, Julia Leung, another SFC executive, said the regulator is “actively looking” to set up a regulatory framework that allows retail investors to trade exchange-traded funds (ETFs) with exposure to cryptocurrency futures. In December, the city’s first crypto futures ETFs were launched.

Tags in this story
Asian crypto hub, crypto asset hub, crypto hup, cryptocurrency hub, Hong Kong, hong kong crypto, Hong Kong crypto regulations, hong kong cryptocurrency, Hong Kong FTX, Hong Kong government cryptocurrency, Hong Kong regulators crypto, Southeast Asia crypto hub

What do you think about Hong Kong becoming a regional crypto hub? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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