According to the latest news, the CEO of Kaiko, Ambre Soubiran, suggested that Hong Kong might soon be crypto trading and investments’ center of gravity. He added that the city’s friendly environment towards the crypto industry is vital to turning the territory into a digital asset hub.
In the report, he added that the seismic shift is further supported by the harsh and strict regulations surrounding crypto conduct in the United States. Ambre Soubiran explained further that despite the US being at the forefront of crypto innovation, its actions to enforce limitations on the industry might cause crypto developers, firms, and investors to shift their gazes away from it to Hong Kong and other countries with relatively crypto-friendly policies.
On April 1st, Soubiran told his audience in the Wall Street Journal that the recent stringent acts of the US against the crypto industry might prove favorable to Hong Kong. He added that the center of gravity of digital assets might shift from America to Hong Kong. She said this is because crypto-related service providers want to be where their clients are most comfortable.
According to reports, the US government started its aggressive stance against crypto around November last year when the FTX crypto network collapsed. At the time, Senator Elizabeth Warren began her anti-crypto army campaign, targeting the elimination of the crypto industry. On the other hand, Hong Kong used the collapse as a stepping stone toward developing a digital asset mega hub.
Hong Kong Aims To Become A Major Crypto City
As a part of its scheme, Hong Kong’s regulators introduced some progressive regulations in January to encourage the growth of high-quality fintech and digital assets firms in 2023. While the rule is yet to be completed, the Securities and Futures Commission of Hong Kong proposed a licensing regime for crypto firms in mid-February. The proposal aimed to protect crypto investors without disrupting the growth of the innovation itself.
Furthermore, the Hong Kong Financial Services Secretary, Christian Hu, announced in March that the city had recorded about 80 firms offering crypto-related services who showed interest in setting out a branch in the town
In addition, reports showed that the SFA and the Monetary Authority for Hong Kong had scheduled a joint meeting for 28. The conference is aimed at establishing partnerships between domestic banks and crypto firms. More so, some Chinese banks like the Bank of Communications, the Bank of China, and Shanghai Pudong Development Bank have started providing banking services to cryptocurrency companies in Hong Kong.
Additionally, Soubiran also stated that his firm, Kaiko plans to relocate its Asian-Pacific headquarters to Hong Kong from Singapore.
