Paul Chan, Hong Kong’s Financial Secretary, said Monday that the region is committed to becoming a regional cryptocurrency hub. Hong Kong welcomed startups and crypto companies to offer services, exploring the possibility of retail participation in this industry. As authorities prepare to issue licenses for crypto firms, crypto exchanges can register under the current licensing system.
Hong Kong Keeps Its Pro-Crypto Standance
Bloomberg reported that Paul Chan, Hong Kong’s Financial Secretary, reiterated that the city will continue its transformation into a global crypto hub at the Hong Kong Web3 Innovator Summit held on January 9.

Advertisement

Many top tech companies and startups are looking to expand their operations or open a headquarters in Hong Kong. Crypto exchanges are also interested in expanding to the region, which helps to develop the market.
The Hong Kong administration recently completed the legislative work necessary to establish a licensing regime for virtual assets service providers. The new regime will require crypto exchanges to comply with the same requirements as traditional financial institutions.
Joseph Chan, the Treasury’s Under Secretary for Financial Services and Financial Services, said that the city plans to hold a consultation about crypto platforms. It will explore the potential retail participation in crypto-related industries.
Trending Stories

Also read: Shiba inu leads a rally for meme coins; SHIB burn rate reaches 1300%
Retail and Institutional Investors are showing increasing interest

Advertisement

With the growing interest from institutional and retail investors, Hong Kong plans on becoming a crypto hub. Crypto companies are moving to countries with more stringent regulations as a result of Singapore’s recent shift towards a strict crypto policy.
Although Hong Kong is a financial hub, the crypto community continues to assess China’s influence in Hong Kong. The crypto market suffered a significant drop due to China’s crackdown on crypto mining activity and trading activity in 2021. Crypto participants should be cautious as China has the ability to control the financial hub.
Also read: Top Reasons Why the Crypto Market Is Rising Today

About the author
Disclaimer

The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.

Crypto Stories
View all