Hong Kong (China)’s acceptance of cryptocurrencies has sparked exchanges to flock to this place to seize potential opportunities.
According to Blockworks , an increasing number of companies are showing interest in entering the Hong Kong market after the Hong Kong Securities and Futures Commission (SFC) introduced a new regulation allowing retail trading of cryptocurrencies . starting on 1.6.
Huobi has just revealed plans to launch a trading platform in Hong Kong on May 26, offering trading services for cryptocurrencies, including Bitcoin and Ethereum. The company’s goal is to enter the market in accordance with regulation, which will help promote the growth of Hong Kong’s Web3 ecosystem
Gate Group – the company behind the Gate.io exchange, just launched Gate.HK on May 23 in Hong Kong and is in the process of applying for a license with an SFC like Huobi. Cryptocurrency-focused financial services provider Amber Group is also reportedly considering a move to Hong Kong. While BitMEX’s platform will open to Hong Kong users on May 29. The fintech arm of Chinese real estate developer Greenland has also shown interest in cryptocurrencies after the SFC announced new regulations.
Hong Kong’s securities regulator has introduced stricter regulations for digital asset companies, including allowing licensed cryptocurrency exchanges to sell to investors of all kinds. large market capitalization cryptocurrencies. All trading platforms are subject to licensing and regulatory compliance. Failure to do so could result in fines and even criminal investigation.
Markus Thielen, head of research at Matrixport, believes that thanks to government and financial regulatory approval, Hong Kong has the potential to regain its status as a leading cryptocurrency hub in Asia
According to Thielen, there is currently a “gold rush” from international crypto companies to cater to retail investors in Hong Kong who are actively involved in highly volatile products such as securities. rights and other derivative contracts. With nearly 100 billionaires in Hong Kong, the place is packed with tycoons and heavily invested family offices that can fund crypto companies.
Analyst at blockchain investment firm Fineqia Matteo Greco says Hong Kong’s regulatory approach appears to have fostered a more collaborative and supportive environment for crypto businesses than markets like the US or China. In 2021, China announced a ban on cryptocurrency trading and mining activities.
However, challenges still exist and it is too early to determine whether the final outcome will be favorable. For example, there are still cases where Hong Kong banks refuse to open accounts from crypto businesses, Greco said