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With its progressive stance on cryptocurrencies, the Hong Kong legislature is proposing that Coinbase and other crypto exchanges establish operations in the region, creating a favorable environment for the industry to grow.
Legislative Council member Johnny Ng tweeted expressing support and offering assistance to cryptocurrency trading operators such as Coinbase. He also hinted at the potential for a stock listing. This comes after recent SEC lawsuits against major players such as Binance and Coinbase.
Contrary to the cautious stance of some Western countries towards cryptocurrencies, Hong Kong takes the opposite approach, actively controlling crypto assets through regulation. In January 2023, Paul Chan, Hong Kong’s financial secretary, announced the government’s commitment to building a strong ecosystem for cryptocurrencies and fintech. Subsequently, Hong Kong diligently formulated rules and implemented compliance measures to promote the expansion of the cryptocurrency industry.
I hereby offer an invitation to welcome all global virtual asset trading operators including @coinbase to come to HK for application of official trading platforms and further development plans. Please feel free to approach me and I am happy to provide any assistance. pic.twitter.com/bcIi1IjMlc
— Johnny Ng 吴杰庄 (@Johnny_nkc) June 10, 2023
The Hong Kong Monetary Authority (HKMA) recently announced its intentions to lay the groundwork for the introduction of a retail central bank digital currency (CBDC). This initiative, which was announced on June 9, aims to explore the benefits of CBDC as a means of paying for everyday transactions and making it easier for customers to access cryptocurrency exchanges.
In addition, the invitation of Legislative Council member Johnny Ng is indicative of Hong Kong’s ambition to become the digital center of the cryptocurrency industry. Notably, OKX and Huobi compliant companies are already participating in this endeavor and are currently listed on the Hong Kong Stock Exchange.
The favorable approach to cryptocurrencies in Hong Kong has attracted significant interest from well-known international technology companies. As evidence of this, in January, renowned Korean tech giant Samsung announced the introduction of an active exchange-traded fund (ETF) for bitcoin futures on the Hong Kong Stock Exchange. The move is indicative of the growing recognition and participation of influential industry players in Hong Kong’s cryptocurrency ecosystem.
Related: Hong Kong’s regulatory guide makes it a major cryptocurrency hub
In addition, reports surfaced in mid-February that Chinese officials had given strategic approval to Hong Kong’s cryptocurrency initiatives. This recognition from the Chinese authorities further highlights the importance of Hong Kong’s crypto efforts and their potential impact on the wider digital currency landscape.