The Securities and Futures Commission Hong Kong is gradually aligning itself in the cryptocurrency sphere. It is for the same reason that the SFC has recently initiated the new crypto regulations for 11 more identified cryptocurrency exchanges, including such popular ones as Crypto. com and Bullish.
The Signs of An Exciting New Era For Digital Assets
Specifically, the SFC’s move to proceed with these licenses strengthens the government of Hong Kong’s stance on the development of the territory into a key player in the digital-asset environment. To achieve its goal, Hong Kong plans to establish a powerful legal system to provide enterprises dealing in cryptocurrencies, as well as other virtual assets like initial coin offerings, a favorable environment to operate in. The city has all the attributes that any such enterprise would require; it has a strategic location and is also very financially sound; this ensures that there is encouragement of innovation in the industry.
Competing on the Global Stage
In today’s world, it is pertinent that everyone wants to compete on the international level in order to get maximum success.
Such plans create a direct rivalry with other international financial cities, especially Dubai and Singapore in the case of Hong Kong as the city is determined to become the major hub for digital assets. Currently, both cities have developed great strides in promoting blockchain technology and the general economy for cryptocurrency-related ventures. On the other hand, there are many opportunities that Hong Kong has, including the financial system and an exceptional position to be a door to China.
Even though the Chinese authorities have prohibited trading in digital assets within their mainland jurisdiction, there is still a considerable amount of interest among Chinese investors in the market for these assets. On one hand, there are advantages that the city owns – being in close connection with mainland China and using this to attract Chinese money into developing digital assets. However, it still has to avoid the pitfalls associated with being part of the Chinese market and working within the confines of the regulating laws of China.
Summing up, it can be stated that Hong Kong’s SFC has outlined a strategy to make the city an Asia hub for digital assets. But this decision to become a part of it- a big step of Bullish, and of, has always been a part of this journey. In terms of regulation as well as investor protection, finding itself in the middle of a rock and a hard place is what Hong Kong has to face while preparing itself to match up with other global financial centers and enhancing the favorable market arising from digital assets.
Also read: Bitcoin Bounces Back: Crypto Market Eyes Green Light for Hong Kong Spot ETF
