Hong Kong aims to become a Web3 and crypto hub, and it seems on the right track. It must be said that despite its anti-crypto position, China recognizes that Web3 could stimulate its digital economy. In this context, there are rumors that some Chinese officials are participating in Hong Kong crypto events. At the same time, Chinese state banks are now offering services to local crypto businesses. For the director of the Hong Kong regulatory body, only one thing is missing: to protect investors. To do this, here is what Julia Leung offers.
Regulate exchanges in a country that remains anti-crypto!
Currently, the government is working to improve blockchain standards in China. Meanwhile, the head of Hong Kong’s Securities and Future Commission is campaigning for a regulation of crypto platforms. Julia Leung has indeed stated that this is necessary to protect investors. The head of the Hong Kong SFC clarified that crypto exchanges are part of the Web3 ecosystem. The statements were picked up by local media in a report released Thursday. Leung made his remarks at the Boao Forum for Asia 2023, dubbed the Davos of Asia. The event took place in the Chinese province of Hainan.
Separately, Chinese media reported on Friday the statements of the Deputy Governor of the Chinese Central Bank at the forum. Xuan Changneng said that China maintains tough stance on crypto. Also, he mentioned the collapse of bankrupt crypto exchange FTX. For him, this fall demonstrated a lack of market regulation.
However, the Deputy Governor of the Central Bank of China praised stablecoins. He acknowledged that these assets are convenient for making cross-border payments. He still lamented that stablecoins are vulnerable to scams and illegal trading.
Currently, Hong Kong is working on setting up regulation of virtual asset service providers. At the same time, the city is targeted by more than 80 companies wishing to set up there as Web3 service providers. Among these, there are at least eight companies offering crypto services that could receive licenses before 2024. In fact, the Chinese city has become the new preferred destination for crypto firms.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
