Independent Reserve Crypto Exchange may Open branch in Hong Kong
2023.03.23 08:52
Independent Reserve Crypto Exchange may Open branch in Hong Kong
By Tiffany Smith
Budrigannews.com – Independent Reserve, a cryptocurrency exchange based in Australia, is looking into opening a business in Hong Kong as the city works to become a center for cryptocurrencies.
In line with its goals to become Asia’s next crypto hub, the Hong Kong Securities and Futures Commission (SFC) released a proposed licensing regime for cryptocurrency exchanges on February 20. It is scheduled to take effect in June.
Adrian Przelozny, co-founder and CEO of Independent Reserve, told Cointelegraph that the “friendly” licensing regime makes Hong Kong a good place to set up a new base, which his company is now seriously considering.
“Right now, it looks very interesting […] The recent announcement by Hong Kong’s regulators does make Hong Kong appear to be a friendly jurisdiction.”
He went on to say, “We see Hong Kong as a good opportunity for Independent Reserve, and we’re always looking for new areas in Asia where we can expand our business.”
The potential move would follow any semblance of its friends Huobi and OKX.
Cryptocurrency businesses with headquarters in Hong Kong are required to adhere to a number of safeguards for the safe custody of their assets under the new licensing system. These safeguards include Anti-Money Laundering, Know Your Customer, countermeasures against the financing of terrorism, and disclosures and audits regarding conflicts of interest.
According to Przelozny, his team will visit Hong Kong next week to discuss the company’s needs with lawyers, regulators, banks, and compliance experts.
Przelozny said that, when it comes to the political relationship between the region and China, China is trying out a more relaxed cryptocurrency regime in Hong Kong.
He believes China may follow suit if successful:
“The Chinese government is experimenting with a looser cryptocurrency regime in Hong Kong to see how it affects the business landscape there. I believe that if they perceive it as beneficial, they may implement it throughout China and relax their restrictions.
In a Bloomberg interview in December 2022, Tron CEO Justin Sun made similar remarks.
He accepts that China is involving Hong Kong as an “try base” to go with a last choice on its strategy position.
Przelozny, on the other hand, is cautious because it might just be a “transitory experiment” that could be reversed in the future.
Przelozny stated that the final box to check if Independent Reserve is satisfied with the regulatory environment would be the cost of opening a business there and the company’s estimation of the return on investment.
In Singapore, Independent Reserve provides licensed virtual asset service.
After purchasing the domain name for $2 million (three million Australian dollars), it also recently launched Bitcoin.com.au.
Longstanding Australian crypto trade Autonomous Save has purchased pic.twitter.com/lRHaPi5vhe
North of 80 digital money firms across central area China and somewhere else have communicated revenue in laying out a presence in Hong Kong of late, as per a Walk 20 explanation by Christian Hui, the Secretary for Monetary Administrations and the Depository.
