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Coinbase and other crypto exchanges have been invited to establish operations in Hong Kong; the region has received praise for its progressive stance on cryptocurrencies.; the region has received praise for its progressive stance on cryptocurrencies.
A Hong Kong legislator has praised the Country’s progressive stance on cryptocurrencies and has invited Coinbase and other crypto exchanges to establish operations in the region. Johnny Ng of the Legislative Council tweeted support and assistance for “all global virtual asset trading operators” like Coinbase. Additionally, he hinted at the possibility of listing stock on the stock market following recent lawsuits filed against essential industry players like Binance and Coinbase by the US Securities and Exchange Commission.
Hong Kong has adopted a proactive approach to cryptocurrency, contrary to the cautious stance taken by several Western countries. A strong crypto and fintech ecosystem is one of the government’s goals, according to Hong Kong Financial Secretary Paul Chan in January 2023. Hong Kong has therefore promoted the cryptocurrency industry by diligently developing regulations and implementing compliance measures.
As reported by the Hong Kong Monetary Authority (HKMA), it intends to lay the groundwork for introducing retail Central Bank Digital Currencies (CBDCs). Known as the CBDC initiative, this plan was launched on June 9th to examine the benefits of CBDCs as a payment method for everyday transactions and to make cryptocurrency exchanges more accessible to consumers.
The invitation extended by Legislative Council member Johnny Ng demonstrates Hong Kong’s determination to become a crypto hub. Several cryptocurrency exchanges in the region applied for virtual asset service provider licenses in early 2018. Huobi and OKX were among the first to do so.
Additionally, prominent international technology companies have expressed interest in Hong Kong’s favorable approach to cryptocurrencies. In January, the Stock Exchange of Hong Kong announced that Samsung would introduce an exchange-traded fund that would invest in Bitcoin futures.
According to reports published in mid-February, the Chinese government appears to have approved Hong Kong’s crypto initiatives as well. Chinese authorities have recognised Hong Kong’s involvement in the crypto space, recognising its potential impact on broader digital currency markets and efforts in this area.