#Crypto in #HongKong revisited

Hong Kong aims to become a leading cryptocurrency hub and is receiving support from an unexpected source—the Chinese government. Despite China’s tough stance on crypto, it is taking a more lenient approach toward Hong Kong’s ambitions.

As a Special Administrative Region, Hong Kong has its own laws and governance under the “one country, two systems” principle. National People’s Congress member Nick Chan stated that Hong Kong is free to pursue crypto goals as long as it doesn’t threaten China’s financial stability.

The Securities and Futures Commission of Hong Kong introduced a new crypto license regime, requiring centralized exchanges to obtain licenses. The regulator also proposed allowing retail traders access to licensed platforms, preventing them from resorting to unregulated overseas options.

Huobi Global, a prominent exchange, plans to obtain a local license and establish an exclusive Hong Kong exchange for institutional investors. Chinese banks, including Shanghai Pudong Development Bank and Bank of Communications, have started offering banking services to Hong Kong crypto firms.

China Pacific Insurance’s Hong Kong subsidiary launched two crypto funds with Waterdrip Capital, targeting institutional and wealthy investors. Notably, these funds do not carry government backing.

Greenland Holdings, a Chinese state-owned real estate developer, is applying for a virtual asset trading license in Hong Kong. It aims to expand into trading cryptocurrencies, NFTs, and carbon emissions-related products.

Hong Kong’s commitment to developing a robust crypto infrastructure is attracting interest from Chinese state-owned banks and institutions. Experts believe it has the potential to surpass the US as a global crypto center.

Cameron Winklevoss, co-founder of Gemini exchange, suggests that the next crypto bull run will originate in the East, highlighting the global nature of crypto. Exchanges like Gate.io and Huobi Global plan to apply for crypto exchange licenses in Hong Kong to cater to local clients.

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