Hong Kong Express support for crypto as US regulator continues to crack down

While other regulators, such as the United States Securities Exchange and Commission (SEC), appear to have turned their backs on crypto, Hong Kong has continued to support the industry’s stance on its commitment to becoming a crypto hub.

Over the past few months, the Hong Kong government has launched several plans to showcase the region’s support for the crypto industry. Recently, Hong Kong’s Financial Secretary, Paul Chanrevealed the government’s plan to invest in the evolving Web3 ecosystem.

Hong Kong Express support for crypto

To be part of the early core contributor to Web3, the Hong Kong government invested HK$50 million ($6.5 million) in the island city’s 2023-24 budget – a move aimed at the Web3 ecosystem.

The invested funds were said to be used to boost several necessary sectors that could promote Web3 adoption, including cross-sector business cooperation, organizing workshops and so on.

So far, the Island City project has helped Hong Kong’s efforts to support emerging technology, strengthening its status as Asia’s leading financial center.

In a recent report published by Barron, the Hong Kong The Monetary Authority plans to launch a roundtable conference by April 28, 2023, to facilitate proper dialogue with the crypto industry.

Hong Kong’s approach to crypto has been significantly different from other Asian financial centers, such as Singapore, which have been quite discreet with their moves on crypto.

Paul Chan commented on Hong Kong’s efforts to promote the crypto industry and so:

In order for Web3 to steadily take the path of innovative development, we will adopt a strategy that emphasizes both “correct regulation” and promoting development.

Chan further mentioned “financial security, investor education and anti-money laundering measures”. Kishore Bhindhi, a lawyer based in Hong Kong, added, telling Barron’s that Hong Kong’s move shows the region’s aim to become a home for cryptocurrency.

Bhindh noted that the Island City project may in the future turn to crypto’s application to traditional financial services, such as tokenized bonds and securities.

The US regulatory authority continues the crackdown

Meanwhile, the US regulator has expressed a further crackdown on the crypto industry. In February, the SEC ordered Paxos, the issuer of the Binance-branded stablecoin, BUSD, to stop issuing the stablecoin.

In addition, the SEC has since pursued effort services, assess these assets securities. Recently, the United States’ Commodity Futures Trading Commission (CFTC) has also. filed a lawsuit against Binanceone of the leading crypto exchanges in the industry.

Regardless of the news circulating in the industry, the global crypto market has remained calm. Over the past 24 hours, the global crypto market capitalization has increased by 3.2% at the time of writing, with a value still above $1.2 trillion.

Featured image from Shutterstock, chart from TradingView