Hong Kong Believes in Crypto market despite Crisis
2023.01.09 07:06
Hong Kong Believes in Crypto market despite Crisis
By Ray Johnson
Budrigannews.com – Despite the ongoing industry crisis brought on by the FTX collapse, the Hong Kong government maintains its commitment to the development of cryptocurrency infrastructure.
In 2023, the local government and regulators of Hong Kong, as stated by Paul Chan, are open to collaborating with crypto and fintech startups.
The public broadcasting service Radio Television Hong Kong (RTHK) reported on Jan. 9 that Chan declared that Hong Kong has become a foundation connecting high-quality virtual asset firms at an event hosted by the state-run incubator Cyberport.
According to the financial secretary, crypto-related businesses have made numerous requests to establish global headquarters in Hong Kong over the past two months. Chan continued, “A large number of industry businesses have also expressed willingness to either expand operations in Hong Kong or go public on local exchanges.”
The official claims that Hong Kong is making every effort to maintain a sufficient level of oversight over the cryptocurrency market in order to unleash the potential of Web3 technologies.
He mentioned that in December, lawmakers in Hong Kong approved legislation to establish a licensing system for service providers of virtual assets. The new regulatory framework is intended to grant cryptocurrency exchanges the same level of market recognition as traditional financial institutions currently enjoy.
Chen also reportedly mentioned at the event that Hong Kong officials and regulators are carrying out a number of pilot projects to investigate related applications and test the potential benefits of virtual assets. He mentioned that one of the initiatives is the Hong Kong government issuing tokenized green bonds for institutional investors to subscribe to.
Over the past year, Hong Kong has been gradually reiterating its support for cryptocurrency, making it the most crypto-ready nation in 2022.
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Hong Kong launched its first two exchange-traded funds (ETFs) for cryptocurrency futures in the middle of December. Prior to their debut, the funds raised more than $70 million. The occurrence occurred shortly after the head of the Securities and Futures Commission in Hong Kong made the announcement in October that Hong Kong is willing to differentiate its approach to crypto regulation from the Chinese crypto ban that will be implemented in 2021.
