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- 1 The Hong Kong treasury head says, “crypto is here to stay.”
- 2 Previously, the nation allowed retail investors to trade BTC and ETH.
Cryptocurrency sector is having issues entering the mainstream market due to regulatory pressure around them. However, a few countries are aware of its potential to enhance efficiency in finance. A recent report highlights that Hong Kong is likely to allow crypto trading for retail investors.
Hong Kong Intends to Become a Global Crypto Hub
A Hong Kong-based English language newspaper, The Standard, reports the nation decided to do so due to rising user interest in trading. The nation’s head of financial services and treasury, Christopher Hui, said in an interview that “crypto is here to stay.” However, he explained that crypto exchanges need to abide by certain processes to safeguard people’s funds.
Hui said, “Despite the potential risks involved, (virtual assets) also carries with it fundamental value.” He added, “So for these positive elements to be harnessed, these activities have to be allowed in a regulated way.” Records from law enforcement agencies in the nation shows Hong Kong has witnessed $217 million worth of crypto scams till now.
He further highlighted that, “Different jurisdictions will adopt the right approach to their own market, and Hong Kong is no exception,” establishing that they intend to make the region a global crypto hub in a safe environment. Recently, the Central Bank of United Arab Emirates (CBUAE) and the Hong Kong Monetary Authority (HKMA) held a meeting to discuss crypto regulations, according to a press release.
Both the entities agreed on terms associating with virtual asset regulations, financial market connectivity and infrastructure. Moreover, they discussed improvements in cross-border transactions and to use Hong Kong’s infrastructure to enter Mainland and Asian segments.
South China Morning Post, another HK-based news agency, reported in February 2023 that the nation will allow retail investors to trade leading cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH). The decision came on the grounds that trading is done on licensed crypto exchanges under HKMA’s watch.
Crypto Regulatory Scenario Does Not Appear to be Loosening Soon
ByBit, a cryptocurrency exchange, recently announced they are exiting Canada due to regulatory developments in the nation. The decision came amid the company’s global expansion plans. Moreover, it will not accept deposits from Canadian users after July 31, 2023.
According to KVUE, a Texas-based television station, House Bill 1666 proposed by Giovanni Capriglione, a Texas House of Representative member, is currently waiting for the Governor’s signature. If passed, Texas will become the first U.S. state to officially regulate digital assets. The law includes certain conditions which, if not abided by, may impose penalties on a crypto exchange. The regulation intends to safeguard users from the perils associated with virtual currencies.
Russia dropped plans to develop a ‘national crypto exchange’ in the country. Instead, it will focus on private exchanges now. The country still appears skeptical about the market. Currently, the nation is involved in a war against Ukraine. Ukraine has received significant donations in cryptocurrencies.
The World Economic Forum (WEF), a lobbying organization for multiple companies, suggested measures to regulate cryptocurrencies. Furthermore, it also called out the crypto sector for cybersecurity enhancement in space.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
