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Regulation and Policy

US Crypto Regulation Pushes Investors and Companies towards Hong Kong

US Crypto Regulation Pushes Investors and Companies towards Hong Kong

Kaiko CEO Ambre Soubiran suggests that Hong Kong’s supportive regulatory environment may turn it into the “center of gravity” for cryptocurrency trading and investments.

The US has been at the forefront of the crypto sector for quite some time. Still, with the government taking a stringent approach to crypto regulation, there is a growing feeling that many companies, developers, and investors will soon look for friendlier environments to work in.

Frosty US Regulation Pushes the Crypto Industry Towards Hong Kong

Speaking with the Wall Street Journal on April 1, Soubiran suggested that the recent crackdown on crypto in the US will inadvertently help Hong Kong in its goal of becoming a major crypto hub. She added that “we want to be where our clients are.”

While the US government has become increasingly aggressive towards crypto since the collapse of FTX in November, Hong Kong has been moving in the opposite direction. In January, the Hong Kong government outlined its plans to become a crypto hub by introducing progressive regulation to support high-quality crypto and fintech firms in 2023.

Hong Kong’s Securities and Futures Commission (SFA) has proposed a crypto licensing regime, which focuses on providing consumer protections without stifling innovation. More than 80 virtual asset-related firms have expressed their interest in setting up shop in Hong Kong, and 23 crypto firms have already indicated that “they planned to establish their presence.”

Joint Meeting to Help Crypto Firms Set Up Domestic Banking Partnerships

In March, the Hong Kong Monetary Authority and SFA announced that they would hold a joint meeting on April 28 to help crypto firms set up domestic banking partnerships. Chinese banks such as Shanghai Pudong Development Bank, the Bank of Communications Co., and Bank of China Ltd. have reportedly either started offering banking services to crypto firms in Hong Kong or made inquiries with crypto firms.

READ MORE: Top 5 Cryptocurrencies to Watch in April

Kaiko’s Relocation to Hong Kong

Kaiko, a Paris-based institutional crypto market data provider, is also relocating its Asian-Pacific unit headquarters from Singapore to Hong Kong, in response to the country’s favorable crypto stance. Soubiran revealed in an interview with Bloomberg that “what we’re seeing is a clear support for more clarity on the regulatory framework in Hong Kong,” and that “while we’re seeing an increased attractivity of Hong Kong in the region, we are relocating.”

With Hong Kong’s friendly approach to crypto, it is becoming increasingly clear that the region may become the preferred destination for crypto investors, companies, and developers looking for a more supportive environment.

Andrey Kunev

Reporter at CoinsPress

Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.

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