In recent years, Hong Kong has come up as one of the leading destinations for cryptocurrency and blockchain-related businesses due to its open regulatory framework. The government’s progressive approach towards the regulation of digital assets has gained a lot of attention among new firms to build up their presence in the city, making it a hub for innovation in the industry.
Pleasant Regulatory Environment
Hong Kong’s regulatory environment is one of the most pleasant in the world, making it a preferred choice for tech companies exploring places to operate their businesses. The government has introduced clear guidelines for the issuance of digital assets and offers a framework for the operation of virtual asset trading platforms. Additionally, Hong Kong’s Securities and Futures Commission regulatory’s sandbox helps fintech companies to experiment with their innovative solutions without being subject to the full range of regulatory requirements.
New Firms Set Up Shop
As a result of Hong Kong’s open regulatory framework, new firms have been attracted to the city, with many setting up their operations in the city’s thriving financial district. These firms include Singaporean bank DBS, and Seychelles-based crypto exchange, Huobi. Signum Digital, a joint venture of Coinstreet and Somerley, has also been given the approval-in-principle from the Hong Kong Securities and Futures Commission (SFC) for its security token offering (STO) and subscription platform.
Moreover, the reputed Cryptocurrency data firm Kaiko is also planning to shift its business to Hong Kong due to the country’s attractive crypto policies and friendly attitude. Hong Kong’s approach towards digital asset regulation has been acknowledged globally, with the city being picked to conduct the 2023 World Digital Asset Summit. The summit will unite together experts, industry leaders, and policymakers to discuss the future of digital assets and their regulation.