Hong Kong Is Vying To Be The Next Crypto Hub
Hong Kong’s recent policy announcement indicating its desire to make the island a happy place for crypto companies to come and set up shop has given pro-crypto excitement to the Chinese crypto community. The regulations announced last week embody the “One Country, Two System” mandate whereby Hong Kong is still very much a part of China, but enjoys occasional policy exceptions. While the mainland still bans crypto, Hong Kong appears to have been given the greenlight to openly court—and regulate— the sector. The contrast with the US could not have been more drastic, as while the US cracks down on ICO-era projects, Hong Kong officials have voiced their commitment to crypto and the wider digital asset space. Hong Kong is banking on the new sector to revive its bruised economy, and the city is known to have many high net worth individuals. Centralized exchanges played a major part in the week-long conference, and most of the founders and CeFi OGs showed up at the conference.The Hong Kong government wants to make sure the industry is regulated and allowed to flourish here—within limits. For example, DeFi companies must apply for licenses and follow certain rules. Above all, the government here is ever conscious of how this will play out in Beijing, which in the end will either look the other way, or bring the hammer down. Hong Kong will have a tough journey ahead to fight for crypto tax income as its enemies include not only Singapore but also Dubai which has recently begun issuing licenses to crypto exchanges.
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