Hong Kong Moves Towards To Legalize Crypto Trading

Hong Kong Moves Towards To Legalize Crypto Trading

Hong Kong has been referred to as a global financial hub for a very long time. From some of the most expensive real estate to major businesses setting up their operations in the region, investors have always been keen to accommodate businessmen. However, in recent years investors have moved towards regions that have friendlier regulations and jurisdiction. In an attempt to earn back their status as a global financial hub. After the announcement last year by the city which saw many limitations to crypto trading, investors were not happy and expressed interest to move their base of operations to Singapore or Dubai, where the government is much more crypto-friendly. HONG KONG AND RETAIL CRYPTO It took a while but the government of Hong Kong was quick to reverse its previous decision of placing key limitations on the use of crypto for daily exchange. Having proposed a new alternative to the previous announcement, retail investors will now be able to trade cryptocurrencies and related digital assets. While simultaneously the government will be looking to test the impact of issuing NFT and also testing out the impact of having a central bank digital currency (CBDC). The authorities commented on reviewing the property rights with respect to tokenized assets by saying it was looking “to provide a solid legal foundation for their development.” While the government is looking to create a system that works for the entire cryptocurrency it is currently only looking to explore “confined to bitcoin futures and ether futures on the Chicago Mercantile Exchange.” The Financial Secretary of Hong Kong, Secretary Paul Chan continued to quote, “We want to make our policy stance clear to the global market, to demonstrate our determination to explore fintech with the global virtual asset community.” COMMENTING ON THE FUTURE The governing body of Hong Kong is clear that digital assets are here to stay. Whether they be in the form of cryptocurrency or NFTs, it is inevitable to avoid the use of cryptocurrencies by investors. The realization has led to the authorities creating a policy statement that clarifies and further explains the way assets will be regulated and the options available for retail investors to trade and exchange in cryptocurrency. Furthermore, the Treasury Bureau was also quoted saying, “We recognize VA [virtual asset] is here to stay, given how it has attracted the attention of global investors and is increasingly viewed as a conduit for financial innovations, not to mention the future opportunities that will be opened up as VA moves into the areas of Web 3.0 and the Metaverse.” It also continued its statement with, “The Government, in conjunction with the financial regulators, are working towards providing a facilitating environment for promoting sustainable and responsible development of the VA sector in Hong Kong.” Ultimately, it became clear that when it comes to virtual assets and digital currencies Hong Kong has had a change of heart. RESPONSE OF INVESTORS Despite the damage that the previous decisions inflicted on the economy of the region, many businessmen and investors seemed to be content with the decision. There have been many new investors that are considering working in Hong Kong while existing investors are satisfied with the decision of the government. In continuation, the major stakeholders in the region also believe that there are many advantages to adopting virtual assets at the earliest. With the increasing development of Web3 and the Metaverse, it is only a matter of time before cryptocurrency becomes a necessity for a successful business. Investors were satisfied that they would get similar advantages as most investors get while Crypto mining in Dubai. CONCLUSION The authorities in Hong Kong realized at the right time how to retain investors as well as benefit from blockchain technology. By becoming a part of the industry, the government can not only focus on developing policies but can also have a huge role in boosting the economy. Experts have already assessed the bright future of cryptocurrency, and with the increase in interest by many people in crypto mining.