missjulie.verse

02/22 10:44

Hong Kong Changes Stance as Crypto Landscape

The SFC first introduced its crypto regulatory framework back in 2018, which banned retail investors from trading crypto. However, the SFC said that the "virtual asset landscape has changed significantly" since it first announced the regulatory regime. 

Notably, the Hong Kong government has already allowed retailed investors access to exchange-traded funds (ETFs) investing in CME Group (CME) Bitcoin and Ether futures. 

Furthermore, Hong Kong raised $102 million worth of digital green bonds earlier this month. The sale marked the first tokenized green bond issued by a government, projecting the government’s forward-looking stance on blockchain and DLT.

Nevertheless, Hong Kong's move is a stark contrast to mainland China where all types of crypto-related transactions are banned. With the city's introduction of a more crypto-friendly regulatory environment, some of the Chinese-founded Web3 companies in exile might turn to Hong Kong for Chinese tech talent. 

Hong Kong, once the world's crypto hub, started to lose its position in mid-2022 amid increasing concern about the city's regulatory ambiguity on crypto and the emergence of potential rivals like Singapore and Dubai that are considered more friendly to the crypto industry.

“There was a point in time where Hong Kong had a leading position in cryptocurrency and business related to crypto,” Padraig Walsh, a partner at the Hong Kong law firm Tanner De Witt, said back in September. “That isn’t the case anymore, and I think regulation has been a key part of the reasons why

4Share