FTX founder says Hong Kong could be the best blockchain center in Asia

Crypto exchange FTX founder Sam Bankman-Fried said that, unlike the West, although Asia does not have a key web3, blockchain and cryptocurrency hotspot, Hong Kong may emerge as a leader in that sector.

Bankman-Fried said virtually during the annual Hong Kong FinTech Week 2022 that other potential locations in Asia are Singapore and Busan.

“If you look at what the crypto hubs will be in the world, I think the Bahamas looks like one of them, Dubai looks like one of them, but if you look at the East, it’s not as obvious. It could be Singapore, could be somewhere like Busan in Korea, but I think there’s a real chance it will end up being Hong Kong,” Bankman-Fried said.

Furthermore, the world’s youngest billionaire Bankman-Fried added that the Hong Kong government’s crypto initiative to start a consultation on the legalization of crypto trading by retail investors is a positive sign of a brighter future for crypto in the region.

Hong Kong plans to issue tokenized green bonds and prepare the development of the digital Hong Kong Dollar.

HKSAR Financial Secretary Paul Chan spoke virtually during Fintech Week on Monday to introduce the latest policy statement on virtual assets to the public, saying that “we want to make our policy stance clear to global markets, to demonstrate our willingness to explore financial innovation together with the global virtual resource community,” hoping to maximize the benefits and innovation of Fintech in virtual assets.

Regarding the upcoming tokenization of green bonds, Eddie Yu, CEO of the Hong Kong Monetary Authority (HKMA), spoke at the same event and revealed that the authority plans to issue the first batch of green bonds this year globally, with the aim of promoting the product first to small-scale retail investors. Details will be announced further later.

FTX was moved from Hong Kong to the Bahamas in 2021 due to regulatory uncertainty.

Bankman-Fired also confirmed last week that FTX plans to launch its own stablecoin.

Speaking in an interview with Web3 news outlet, The Big Whale, Bankman-Fried discussed several of the industry’s perceptions regarding the exchange’s position at the top of the ongoing crypto winter.

Contrary to the popular belief that FTX is the biggest winner in the industry based on its success in snapping up Voyager Digital and BlockFi, both crypto lenders that were upset as asset prices fell, Bankman-Fried reiterated that its role, regardless of opinion is to help maintain the industry balance, which will in turn benefit everyone.

Acknowledging that this current crypto winter is the “first real Bear Market we’ve been through,” the FTX CEO acknowledged that the market downtime does not affect the business as such, as it is always innovative.

“One of the main characteristics of crypto platforms is that our operations are not affected by the market downturn more than that,” he said, “Every day we continue to grow the business, creating services and new tools for customers. So, yes, the markets are less dynamic, things is a little more excited, but in the end it doesn’t take us off course.”

Meanwhile, neighboring Singapore is building measures to tighten crypto regulations for retail investors.

Last week, the Monetary Authority of Singapore (MAS) unveiled a proposal to limit retail participation in digital assets. After this, small investors will be prohibited from financing coin purchases through borrowing.

Singapore’s central bank echoed sentiments similar to MAS’s in asking companies to stop using tokens deposited by retail investors for lending or efforts to generate returns. However, the restrictions proposed by the two regulatory bodies will not apply to high net worth investors.

However, Singapore is taking these steps to ensure positive growth of the crypto industry with safeguards that will provide security to investors.

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