Jeremy Allaire, CEO of Circle, the company in charge of USDC issuance predicts increased demand for various digital assets. He notably spoke about Dogecoin, Bitcoin, Ethereum and Cardano. He is pointing out that demand will come mainly from emerging markets, of which Hong Kong and China are central. Remember that despite some sporadic increases, the cryptocurrency market in general is down.
Jeremy Allaire sees Hong Kong’s attractive crypto regulations as a boost
For several months, Hong Kong, with the support of China, has taken positions in relation to the crypto industry that tend to make it a major crypto hub. It all starts with regulations, which are increasingly favorable to digital assets. First, the Hong Kong Securities and Futures Commission (SFC) requires that all exchanges are registered and authorized before offering services. And, the registration rules are clear. Thus, in the event of problems with justice, the parts will know on which documents to support to argue.
Second, crypto businesses have an obligation to comply with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations. This requires them to keep personal data about users and different operations, including transaction amount.
The disclosure of certain documents on June 26, revealed that HSBC Hong Kong had already started to allow trading in exchange-traded funds (ETFs) Bitcoin and Ethereum instruments listed on the Hong Kong Stock Exchange. However, the bank which is the largest in the region has not confirmed anything yet. But if this were confirmed, Hong Kong would then position itself better than the United States in this area. For Jeremy Allaire, these are elements that work in favor of certain cryptos/
A rise that the crypto market would need
Of all the digital assets that Circle CEO Jeremy Allaire sees on the rise, DOGE is probably the most stable. Otherwise the other mentioned altcoins are kept quite low. Indeed, Dogecoin, the memecoin with the bigger market capitalization, recovered in the second half of June. DOGE is trading at $0.065, up 13% from June 2023 lows. Which is still far from reaching its April performance. A comparison made with the beginning of the second quarter of 2023 reveals a drop of 40%.
Hong Kong wants to take a technology-neutral approach to regulating cryptocurrencies. In other words, the rules will apply to all cryptocurrencies. With this, could China take leadership in cryptocurrency from the United States?
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