Hong Kong aims to become a fully regulated crypto hub
Bitcoin and crypto markets are surging today, boosted by positive news that Hong Kong will open its doors to welcome digital assets and investors.
Hong Kong has ambitious plans to become an Asian crypto hub. In June, it will officially make crypto buying, selling and trading fully legal for all citizens. It also includes mainland Chinese institutions.
Amid a war on crypto waged by US regulators, markets have reacted to this positive news by surging 9% on the day.
A fully open Hong Kong means that money from China can easily flow back into digital assets even though the ban on crypto for individuals remains.
The news stems from an announcement in January by Paul Chan, the Finance Minister of Hong Kong. He said the city plans to become a crypto hub with a robust regulatory framework.
Hong Kong Crypto Hub
Crypto YouTuber Lark Davis pointed out that it was extremely bullish for Bitcoin. Applications have also been made for several exchange-traded funds (ETFs) in Hong Kong.
On February 13, BeInCrypto reported that Singapore’s largest bank, DBS, plans to apply for a digital asset license. This will allow the bank to offer crypto trading to Hong Kong customers.
February 16, Coinbase CEO Brian Armstrong commented about the development:
“America risks losing its status as a financial hub in the long term, with no clear rules for crypto, and a hostile environment from regulators.”
He added that crypto is open to all, and controls that the US once had are being diverted to outside countries like Hong Kong.
TRON (TRX) founder Justin Sun also echoed the sentiment. He has repeatedly stated that the next bull market will be driven by money from China and Asia.
Industry analysts have also predicted that an Asian stablecoin will also emerge in the next market cycle. China and its neighbors have worked hard to distance themselves from US dollar hegemony.
In October, BeInCrypto reported that Chinese government researchers proposed a digital currency based on a basket of Asian currencies.
BTC Price Pumps
Bitcoin prices have been lifted by this rare bout of FOMO. At press time, the asset was up 11.4% on the day to reach $24,681. This is the highest price since mid-June 2022, about eight months ago.
However, BTC still has a long way to go before it sees past peaks. It is currently 64.3% below its November 2021 peak of $69,000.
Disclaimer
BeInCrypto has reached out to the company or person involved in the story for an official statement on the latest development, but has yet to hear back.
