Experts agree that bitcoin (and cryptocurrencies as a whole) would allow Hong Kong to regain its economic freedom. In recent years, Chinese authoritarianism has increasingly taken the upper hand over the administration of the Port aux Parfums. Economic freedom also suffers. Playing the decentralized finance card can help circumvent China’s near absolute control.
Finding economic freedom
Hong Kong has always been a benchmark in terms of economic freedom. For nearly 25 years, the think tank Heritage Foundation has always ranked it as the most economically free country. Hong Kong was then dethroned by Singapore in 2019 before completely disappearing from the annual ranking in 2021. Heritage Foundation justified this decision by China’s interference in the local economy. China which, by the way, took 107th place last year.
For each individual, startups, entrepreneurs, bitcoin and cryptocurrencies would allow them to regain complete economic freedom. An internet connection and a start-up fund are enough to create a wallet. From there, anything is possible. In any case, it is certain that Bitcoin guarantees openness without any authority being able to impose its control. Crypto ensures investment freedom, entrepreneurial freedom, labor freedom, monetary freedom and protects property rights.
Hong Kong and bitcoin (BTC): ready for regulatory adoption?
Bitcoin and cryptocurrencies provide users around the world with economic freedom, empowering both the individual and the nation. And as the adoption of digital assets becomes more democratized, the world will likely see a continued rise in this level of freedom. In 2022, Hong Kong is listed among the countries qualified as “crypto ready“. The country has also announced a plan for the regulation of cryptos on its territory. It has set itself the goal of becoming a hub for this booming sector. And this, while containing the risks.
The Hong Kong Monetary Authority is considering stablecoins that can be used as a means of payment. Regulators are also addressing the security issue of the crypto sector. They want to reassure investors in addition to moving towards increased surveillance of an industry marked by volatility, scams and money laundering.
Exchanges get their license
Obviously, Hong Kong has already begun to conquer the cryptosphere. In mid-August, Gate.io’s Hippo Financial Services obtained a TCSP (Trust or Company Service Provider) license. And this, in order to be able to offer virtual asset custody services in Hong Kong. This license is required for any entity that conducts or wishes to conduct trust business in the country.
Gate.io has among other things a cryptocurrency exchange, a blockchain, a decentralized financial platform. Tom Yang, Group Executive Vice President said:Obtaining the TCSP license in Hong Kong allows us to deepen our relationship with global crypto investors as an industry leader. Then we will set up localized operations to bring our products and services to users in Hong Kong“.
Bitcoin and cryptocurrencies can help establish better economic operations in countries like Hong Kong where economic freedom is less. Crypto is clearly a technology that helps create a more free and liberal financial system. To be sure, digital assets are not going to directly improve all factors of economic freedom. But already, this technology opens the way to a global network.
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