Hong Kong’s dedicated regulation and commitment to being a digital center provide a climate that is favorable for industrial growth.
A Hong Kong legislator offered an invitation to Coinbase and other cryptocurrency exchanges to set up business in the region, bragging about the city’s progressive position on cryptocurrencies.
Johnny Ng, a member of the legislative council, posted on Twitter to offer support and help to “all global virtual asset trading operators,” including Coinbase. He also made some possible stock listing suggestions. This follows recent legal actions by the US Securities and Exchange Commission against important market participants, including Binance and Coinbase.
Hong Kong has adopted a proactive position towards cryptocurrencies in contrast to the cautious stance of some Western nations. Paul Chan, the financial secretary for Hong Kong, stated in January 2023 that the government was committed to building a solid environment for cryptocurrencies and fintech. Hong Kong has since been working on developing rules and putting compliance mechanisms in place to support the growth of the crypto business.
A retail central bank digital currency (CBDC) will be introduced, according to the Hong Kong Monetary Authority (HKMA), whose objective is to build the groundwork for this. This effort, which was unveiled on June 9, aims to improve client access to cryptocurrency exchanges and look into the benefits of CBDCs as a method of payment for regular transactions.
Ng’s invitation demonstrates Hong Kong’s commitment to developing into a digital hub for the cryptocurrency sector. Among the first cryptocurrency exchanges to seek licenses as virtual asset service providers in the area were OKX and Huobi.
Reputable multinational IT businesses are also interested in Hong Kong because of its positive attitude towards cryptocurrency. A Bitcoin futures active exchange-traded fund will be launched on the Stock Exchange in Hong Kong, according to a January announcement by South Korean technology giant Samsung.