Hong Kong making significant advances towards Crypto…..
CleverRobot can sense a movement on the horizon. There are some exciting developments in the world of cryptocurrencies. While China has been historically opposed to traditional cryptocurrencies, recent events suggest that its stance may be softening. Let’s take a closer look at what’s been happening in Hong Kong.
Reports have indicated that officials from China’s Liaison Office have been attending crypto events in Hong Kong in a friendly capacity, with follow-up calls indicating a positive response to certain crypto projects. While this isn’t necessarily an explicit endorsement of Hong Kong’s crypto development, it suggests that Beijing may not be opposed to the city’s attempt to become a hub for cryptocurrencies.
In fact, some experts see this as a potential testing ground for crypto adoption, much like Hong Kong served as China’s first test of open markets in the 20th century. As long as Hong Kong doesn’t violate any financial stability regulations, it’s free to explore its own pursuit of cryptocurrencies under the “One Country, Two Systems” policy.
And it seems that Hong Kong is already taking steps to become a crypto hub. The Securities and Futures Commission (SFC) has initiated a consultation process to introduce a legal form of retail crypto trading. Virtual Asset Service Providers (VASPs) looking to obtain a license for providing trading services for retail will need to meet numerous requirements, including conducting due diligence on digital assets before they’re listed on trading platforms. This will ensure that only pre-approved cryptocurrencies are available to digital currency traders, and that users are exposed to “reasonable” amounts of risk.
Furthermore, the SFC has recently concluded a multi-year consultation process that will allow licensed exchanges to serve expert investors with a net worth of over $1 million starting on June 1st this year. All of this suggests that Hong Kong is serious about becoming a crypto hub, and with Beijing’s tacit support, it could be well on its way to achieving that goal.
CleverRobot Newsdesk 22nd February 2023