Hong Kong pro-crypto legislators triggered a much-needed debate by inviting Coinbase to establish regional operations. Johnny Ng, a ranking member of the Legislative Council, lauded Hong Kong for its proactive crypto regulation.
Ng restated the administrative region’s progress to foster a favorable crypto environment in its quest to become a global digital hub. The legislator touted Hong Kong’s progressive stance on cryptos to invite Coinbase to the region.
Hong Kong Legislator Invites Crypto Firms Disheartened by Enforcement Actions
The legislator appears to ride on the outcry by the US-based crypto exchanges reeling in the recent onslaught by the regulators. His invitation comes days after the US Securities and Exchange Commission (SEC) opened suit against Binance and Coinbase, citing violating existing securities laws.
Ng expressed Hong Kong’s readiness to support virtual asset trading operators to establish operations in Hong Kong. The politician illustrated the possibility of the crypto exchanges accomplishing stock listing opportunities.
Hong Kong Proactive Approach to Nurture Digital Assets Industry
The pronouncement by Ng aligns with the proactive approach portrayed by Hong Kong. On the contrary, Western countries have embraced a cautious stance toward the digital assets industry.
The Financial Secretary in Hong Kong, Paul Chan, had in January 2023 restated the government’s commitment to building a strong crypto and fintech ecosystem. Since the declaration, Hong Kong has committed to formulating regulations and implementing compliance measures to expand the crypto industry.
The Hong Kong Monetary Authority (HKMA) echoed previous sentiments aligned with its intention to establish the infrastructure needed to launch retail-oriented central bank digital currency (CBDC). The initiative unveiled on Friday, June 9, aims to assess the benefits attributed to CBDCs when utilized as a payment mode in executing daily transactions. Also, it tests the advantages of CBDCs use in facilitating access to the crypto exchanges.
Hong Kong Set to Initiate Retail CBDC Implementation
While Hong Kong began evaluating the viability of digital dollars in 2017, a recent study report from market consultation rounds convinced HKMA to start retail CBDC implementation.
HKMA admitted that e-HKD is portrayed as having a minimal role in the present retail payment market. Nonetheless, it projects that e-HKD usage could emerge quickly by leveraging rapid evolution within the digital economy.
Media outlets reported in April that HKMA was leaning towards e-HKD developed upon the permissioned blockchain with private banks tasked with the implementation.
HKMA’s report on June 9 admitted that besides exploring blockchain solutions, the regulator would consider several factors in e-HKD development. HKMA promised to consider policy objectives, technical feasibility, and policy objectives inherent in measures deployed by other jurisdictions.
Hong Kong Becoming an Attractive Crypto Hub
The invitation Ng extended to Coinbase and other crypto exchange providers portrays the Hong Kong administrative region’s dedication to establishing the global digital hub. Its attractiveness is evident in OKX and Huobi becoming the initial crypto exchanges to seek the license to offer virtual asset services.
The favorable approach Hong Kong adopted towards cryptos attracts interest from global tech companies. South Korean Samsung confirmed introducing Bitcoin futures active exchange-traded funds available on Hong Kong Stock Exchange.
Government officials from Mainland China indicated in mid-February of allowing strategic approval to crypto-oriented initiatives Hong Kong is undertaking. The Chinese authorities recognize efforts to nurture crypto space and broaden the digital currency landscape.
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