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In a significant update to the crypto world, somewhat battered by last year's fiascos, Hong Kong firmly reiterated its stand to become a regional crypto hub.
The affirmation came from none other than Paul Chan Mo-Po, the Financial Secretary of Hong Kong. Reassuring the audience, the secretary reminded everyone of Hong Kong’s longstanding commitment to becoming a regional crypto hub.
He stated that the collapse of certain crypto exchanges only helped strengthen Hong Kong’s presence as a ‘quality standing point’ for digital asset corporates. The minister praised Hong Kong’s regulatory framework for crypto, which, he believes, is at par with international norms and standards.
Hong Kong will disburse more licenses for digital asset trading firms in the future, clarified the undersecretary for financial services, Joseph Chan, and will conduct consultations on increasing crypto platforms’ market participation.
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Another step in that direction was taken last when the Securities and Exchange Commission of Hong Kong published advisories concerning Virtual Asset Service Providers (VASPs) offering a high-interest rate on deposits or promising a “daily generation of additional VA at a guaranteed or fixed rate to investors.
Despite the ‘heightened risks,’ as per the Hong Kong SEC’s warning, the country is confident regarding its next steps in the crypto industry. According to officials, Hong Kong has had substantial learning from its “four years of experience in regulating this industry” and is ready to advance.
There is already enough proof that Hong Kong is living up to its commitment. For instance, after declaring in November last year that it was actively looking forward to facilitating investment in ETFs with exposure to crypto futures, the city’s first crypto-futures ETFs came into effect in December.
Hong Kong's efforts to position itself as a regional crypto hub show its determination to stay at the forefront of financial innovation and technology. Yet, it faces strong competition from other crypto-friendly countries in the region, namely Singapore, which has already found its mojo as a crypto powerhouse. So, only time will tell whether Hong Kong’s efforts yield the desired results or not.
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