- FTX, Bit-Z, Amber, and Bitspark are just a few of the many crypto platforms that have sprouted up in Hong Kong
- As a result of the enormous crackdown in China, crypto-businesses have relocated to more crypto-friendly jurisdictions
- As crypto-businesses look to the United States for guidance, the country has its own set of issues
Hong Kong is home to a number of crypto platforms, including FTX, Bit-Z, Amber, and Bitspark, as well as a number of additional firms. However, the city’s luster as a leading crypto-marketplace has since faded. This viewpoint is especially pertinent now, given FTX CEO Sam Bankman-announcement Fried’s that the exchange will relocate from Hong Kong to the Caribbean.
The Bahamas are to host FTX’s new headquarters
The Bahamas will host FTX’s new headquarters due to the country’s pro-active regulatory approach to cryptocurrencies. The Securities Commission of The Bahamas regulates FTX under the DARE Act of 2020, one of the world’s few complete crypto exchange regulations, according to the executive.
FTX isn’t the only cryptocurrency exchange that has recently left Hong Kong. Amber Group, another crypto-finance firm, is trying to expand its footprint in the United States rather than Hong Kong. CEO Michael Wu acknowledged to the South China Morning Post that Amber is considering a direct listing in the United States within the next two years.
In the past, crypto-businesses have faced a significant crackdown in China, prompting many to relocate to more crypto-friendly jurisdictions. Hong Kong appears to be next on the list. Hong Kong’s local authorities have made it increasingly difficult for bitcoin exchanges to operate in the city. While it has begun restricting ordinary investors’ access to the market, it is also continually upgrading its investor warning list to include unregistered digital coins and initial coin offerings (ICO).
No rule for digital assets in Hong Kong
According to reports, the country’s many regulatory organizations have differing views on bitcoin. What I can say is that there are no clear restrictions in Hong Kong for digital assets, according to Alessio Quaglini, CEO of Hex Trust. The rule for the safekeeping of traditional assets is basically what we have to deal with.
However, as crypto-businesses look to the United States for guidance, the country has its own set of issues. As it cracks down on stablecoins, the US government is apparently looking into Tether, which is based in Hong Kong. Aside from that, the US Securities and Exchange Commission has cracked down on crypto-lending products.
The Amber Group will have to wait for the situation to calm down because it offers consumers interest in their cryptocurrency deposits. BlockFi and Celsius have received letters from at least four US states for allegedly breaking securities regulations, while Coinbase came under the regulator’s eyes for a similar offering.