• Hong Kong is expressing interest in becoming a global crypto hub by allowing newer crypto companies and startups to open in the city.
• Paul Chan, Hong Kong’s Financial Secretary, recently spoke at the Web3 forum in Cyberport and reiterated the city’s pro-crypto stance.
• The new licensing regime requires crypto exchanges to remain in sync with the current licensing rules and regulations.
Hong Kong is making strong strides towards becoming a global crypto hub, as the city is taking a pro-crypto stance and introducing a new licensing regime for virtual asset services. This move is aimed at encouraging newer crypto companies and startups to open up in the city, thereby increasing the retail participation in the crypto space.
Paul Chan, Hong Kong’s Financial Secretary, recently spoke at the Web3 forum in Cyberport and reiterated the city’s pro-crypto stance. He mentioned that the city policy statement has been well received by tech firms and startups, who are considering shifting their headquarters and expanding to Hong Kong. However, the names of the firms were not disclosed.
The city has also completed the legislative work necessary to set up a licensing regime for the virtual asset services it provides. This new regime requires crypto exchanges to constantly be in sync with the present licensing rules and regulations. In order to be eligible for licensing, exchanges must meet certain criteria, such as having sufficient capital and sufficient internal control systems. The exchanges must also be registered with the Securities and Futures Commission and must comply with the anti-money laundering regulations.
The news of Hong Kong’s efforts to become a global crypto hub comes as the Singapore crypto market has faltered due to the fall of FTX. Despite this, the city remains optimistic and is actively encouraging the crypto sector to thrive. By opening up to newer crypto companies or startups, Hong Kong could potentially increase crypto retail participation in the city and become a major international crypto hub.