Feeling less and less attractive to the blockchain and cryptocurrency industries, Hong Kong is now indulging in high-profile seduction operations. The local Securities and Futures Commission (SFC) has just reassured that the city has not followed mainland China’s repressive policy towards cryptos. So there will be a relaxation of some restrictions, a related policy statement, and many more.
A more crypto-friendly Hong Kong than China
Hong Kong should not be confused with mainland China where cryptocurrencies are not welcome. It’s kind of the message that Elizabeth Wong, director of licensing and head of the SFC’s fintech unit, wanted to push through last Monday at the InvestHK conference in Hong Kong.
Indeed, the principle one country, two systems “, the result of a negotiation between the United Kingdom and China in 1997, grants Hong Kongers the freedom to decide the fate of their own city. For Mr. Wong, he is a crucial asset in bringing back crypto companies that have migrated to Singapore.
” Hong Kong has the principle of one country, two systems. […] It is a constitutional principle that forms the foundation of Hong Kong’s financial markets. “, she had pointed out.
Hong Kong, less and less attractive?
Hong Kong believes that Singapore has snatched several crypto businesses from its hands. To At one point, the latter feared Beijing’s visceral hatred for digital assets. Thus, in May, Sam Bankman-Fried decided to extricate FTX from Hong Kong soil to join its new headquarters in the Bahamas.
Also, Crypto.com and Huobi have moved to Singapore as the city-state aims to become a Web3 and blockchain-based hub.
Thus, Hong Kong plans to pull out all the stops; several actions are planned soon, namely:
- organization of the 2022 edition of Fintech Week, on October 31;
- establishment of a new general policy relating to cryptocurrencies;
- authorization of trade (sale, purchase, etc.) of digital assets for retail investors;
- allocation of authorization to sell certain derivative products related to virtual assets to service providers;
- review of rules allowing retailers to invest in exchange-traded funds (ETFs);
- introduction of a licensing requirement for all cryptocurrency exchanges;
“As a gateway between mainland China and the West, Hong Kong is very well placed for us to acquire talented people and find high-quality developers to work with. », said Brian Chan, chief investment officer at Venture Smart Asia Hong Kong. This status will allow the city many possibilities to regain the status of welcoming land for crypto exchanges.
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