The world of cryptocurrency is in flux as the United States government continues to tighten regulations. The CEO of Kaiko, Ambre Soubiran, predicts that Hong Kong’s accommodating stance towards crypto will make it the “center of gravity” for cryptocurrency trading and investments, Cointelegraph reported.
For years, the United States has been a leading player in the cryptocurrency sector, but Soubiran believes the growing regulatory measures will force developers, companies, and investors to seek friendlier environments elsewhere. In an interview with the Wall Street Magazine, the CEO stated, “Due to the United States’ increasingly strict stance on cryptocurrency and Hong Kong’s more favorable regulatory environment, there may be a noticeable shift of the focal point of cryptocurrency trading towards Hong Kong.”
As the United States government leans towards a regulation-by-enforcement approach, Hong Kong strives to establish itself as a cryptocurrency hub by implementing progressive regulations that encourage the growth of high-quality cryptocurrency and fintech companies. The Securities & Futures Commission (SFA) of Hong Kong has proposed a licensing regime that aims to provide consumer protection while still promoting innovation. As per reports, above 80 companies related to virtual assets have already expressed their interest in fixing up their businesses in Hong Kong.
Furthermore, cryptocurrency firms in Hong Kong are now being offered banking services by Shanghai Pudong Development Bank, Bank of Communications Co., and Bank of China Ltd. According to Bloomberg, the Hong Kong Monetary Authority and SFA have scheduled a joint meeting on April 28 to facilitate the establishment of domestic banking partnerships for cryptocurrency firms, adding to the positivity surfacing from the special administrative region of China.
Kaiko intends to move the headquarters of its Asian-Pacific unit from Singapore to Hong Kong due to the latter’s favorable stance towards cryptocurrency. Soubiran stated that the regulatory framework in Hong Kong is receiving more clarity and support, and as the region becomes more appealing, the company is relocating.
