Recent Developments In Hong Kong Are Bullish For Crypto—Pay Attention• May 23, 2023 11:42 am • Comments
2 years ago, the Chinese government engaged in a vicious crypto crackdown by targeting miners, setting crippling regulations, and making crypto investment relatively illegal.
Hong Kong, which is a semi-independent ‘autonomous’, special economic zone of China, has been making headlines as a hub of crypto innovation, as of late.
Most notably, Ripple’s recent partnership with Fubon Bank, and a pilot program that allows real-world tokenized assets to be minted and traded, both have investors looking closely at developments in Hong Kong.
Today, Hong Kong is once again the subject of headlines due to one recent development: Hong Kong will allow regulated crypto exchanges to offer services to retail clients.
Those who understand Hong Kong’s place in the Chinese economy know that this move is hugely bullish for the crypto markets, as it gives mainland Chinese citizens access and loopholes to more easily bypass restrictions on the mainland, spelling out 1 billion new, potential crypto investors.
Multiple outlets and influences confirmed:
JUST IN: 🇭🇰 Hong Kong to allow retail investors to access licensed #crypto exchanges.
— Watcher.Guru (@WatcherGuru) May 23, 2023
On June 1st, Hong Kong crypto exchanges will be allowed to offer their services to regular customers.
If alts catch a bid, I expect Chinese-related coins to perform strongly.
Here is my watch-list:
— Miles Deutscher (@milesdeutscher) May 17, 2023
Hong Kong's Securities and Futures Commission (SFC) will start accepting license applications for #crypto exchanges starting June 1st.🇭🇰
— Whale Coin Talk (@WhaleCoinTalk) May 23, 2023
Coin Telegraph had more details:
The guidelines for virtual asset trading platforms will include asset custody safety requirements, cybersecurity standards and the segregation of client assets — among others.
The SFC CEO Julia Leung said that providing clear regulator expectations is “key” to creating a responsible and innovative development environment.
Despite the recent news, and the move toward becoming a crypto hub, Hong Kong exchanges still don’t feature stablecoins on regulated exchanges, according to this policy paper:
— Mike Dudas (@mdudas) May 23, 2023
Coin Speaker explains:
While the regulator is yet to approve any crypto trading platform to provide its business offerings to retail investors, crypto exchanges such as Huobi Global, OKX, and Gate.io have applied to obtain virtual assets service provider (VASP) licenses from the country.
If approved, the companies can tap Hong Kong’s crypto market to increase their user base and strengthen their footprints in the industry.
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