Hong Kong’s Financial Secretary Paul Chan on Monday said the region remains committed to becoming a regional crypto hub. Hong Kong also welcomed crypto companies and startups to offer services, exploring the potential for retail participation in the industry. Crypto exchanges can register with the current licensing regime as the authorities prepare to issue licenses to crypto firms.
Hong Kong Maintains Its Pro-Crypto Stance
During the Hong Kong Web3 Innovator Summit on January 9, Hong Kong’s Financial Secretary Paul Chan reaffirms that the city will continue to transform into a global crypto hub, reported Bloomberg.
Several leading tech firms and startups are considering opening their headquarters or an expansion to Hong Kong. Moreover, crypto exchanges have also shown interest in expanding to the region and helps develop the market.
Hong Kong administration has recently completed the legislative work to set up a licensing regime for virtual asset service providers. Under the new regime, the requirements that crypto exchanges need to meet are consistent with those currently applicable to traditional financial institutions.
Joseph Chan, Under Secretary for Financial Services and the Treasury, revealed that the city is also planning a consultation on crypto platforms. It will help explore the potential for retail participation in the crypto industry.
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Rising Interest From Retail and Institutional Investors
Hong Kong plans to become a crypto hub amid the rising interest from retail and institutional investors. Moreover, Singapore’s recent shift to a strict crypto stance led to crypto companies shifting to countries with less stringent regulations.
While Hong Kong is known for its financial hub, the crypto industry continues to evaluate China’s influence on Hong Kong. China’s crypto crackdown on crypto mining and trading activity in 2021 caused a massive fall in the crypto market. Therefore, crypto participants move with caution as China can exert control over the financial hub.
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