Hong Kong is preparing to take over Singapore’s retail crypto sector
The growth and increasing use of cryptocurrency has brought different reactions in many places. Some fully embrace the industry and its many opportunities with innovative ideas. But some are stepping back in the crypto space by using stricter regulatory measures.
Recently, events in some Asian regions in the digital asset retail industry have taken some interesting turns. For example, Hong Kong and Singapore seem to be moving in opposite directions when it comes to their attitude towards digital retail.
Singapore is gradually backtracking from its previously friendly attitude towards digital assets and its activities. But Hong Kong is preparing for new moves to strengthen its presence in the digital space.
According to a recent report, Hong Kong plans to indulge in retail crypto trading. The region has been known to have a low interest in trading digital assets. But the latest move aims to undo the damage done to the crypto industry by China’s restriction.
Hong Kong to establish compulsory licensing program
A report by Bloomberg revealed that the Hong Kong local government plans to establish a mandatory licensing program. Such a move would enable whitelisted digital asset companies to launch retail products in the region. The region has also planned for the plans to start in March 2023.
The success of this plan is an excellent achievement for Hong Kong. It will mark its ground-breaking initiative to assert its economic independence from the mainland. However, Beijing may still have to agree for the plan to go ahead.
Hong Kong’s plan for retail expansion is aimed at its reputation as an international financial hub. This is a benchmark that is highly sought after by other regional jurisdictions.
Hong Kong regulators are looking for prominent digital assets to facilitate the initiative. However, they probably won’t go for Bitcoin since Chia has banned BTC and others in 2021.
Singapore Retreats On Retail Crypto Participation
For its part, Singapore is pulling back from retail. The reasons are drawn from the collapse of Singapore-based Terra, its ecosystem and other digital assets. Therefore, the Monetary Authority of Singapore (MAS) has taken stricter measures with crypto regulations.
MAS CEO Ravi Menon released some statements regarding the contrasting relaxed rules for digital assets in Hong Kong. Menon stated that they are not competing with other jurisdictions on crypto regulations. Instead, they have arranged necessary measures to control risks that could harm retail investors.
Previously, Singapore was in the midst of this year’s digital decline. Some of the major crises in the crypto space centered in Singapore.
These include the fall of crypto hedge fund Three Arrows Capital (3AC) and Hodlnaut, a crypto lending company. But according to Menon, tightening some crypto norms is the right move in their crypto regulations.
featured Image From Pexels, Charts From Tradingview.com
