Hong Kong's Crypto Ambitions Get a Boost From US Crackdown (wsj.com) 13
Hong Kong's attempt to attract cryptocurrency companies is getting help from an intensifying crackdown by American regulators. From a report: The city was once home to a number of prominent companies, including Crypto.com, BitMEX and now-bankrupt FTX. But increasing competition from Singapore, concerns about China's tough approach to crypto and Hong Kong's prolonged and strict response to Covid-19 meant many companies in the sector left. Hong Kong is now determined to bring some of that action back, in contrast with the U.S. In the past few weeks alone, U.S. regulators have cut off access to crypto products and services, targeted crypto friendly banks, brought civil charges against celebrities said to have touted digital assets and sued exchanges including Binance, the operator of the world's largest crypto exchange. Prosecutors have also accused FTX founder Sam Bankman-Fried, who was based in Hong Kong at one point, of conspiring to bribe Chinese government officials in their latest indictment.
"The U.S. being more stringent these days than ever on crypto and Hong Kong regulating in a more favorable way...is going to clearly shift the center of gravity of crypto assets trading and investments more towards Hong Kong," said Ambre Soubiran, chief executive of Kaiko, a digital assets data provider based in Paris. "We want to be where our clients are," she said. Hong Kong's Securities and Futures Commission proposed a new licensing framework in February, focusing on investor protection. A senior official said at a briefing that the regulator wanted to prevent a recurrence of the problems that brought down FTX, as well as other fraudulent behavior. More than 20 crypto and blockchain companies from mainland China, Europe, Canada and Singapore have told the government they are planning to establish a presence in Hong Kong, while over 80 firms have expressed interest in doing so, according to official figures.
"The U.S. being more stringent these days than ever on crypto and Hong Kong regulating in a more favorable way...is going to clearly shift the center of gravity of crypto assets trading and investments more towards Hong Kong," said Ambre Soubiran, chief executive of Kaiko, a digital assets data provider based in Paris. "We want to be where our clients are," she said. Hong Kong's Securities and Futures Commission proposed a new licensing framework in February, focusing on investor protection. A senior official said at a briefing that the regulator wanted to prevent a recurrence of the problems that brought down FTX, as well as other fraudulent behavior. More than 20 crypto and blockchain companies from mainland China, Europe, Canada and Singapore have told the government they are planning to establish a presence in Hong Kong, while over 80 firms have expressed interest in doing so, according to official figures.
As an American Citizen (Score:3, Insightful)
Re: (Score:2)
They're probably referring to allowing the exchanges to operate in Hong Kong, not necessarily allowing their own economy to become entangled in the crypto mess. It's like every time I flip over some of the kitschy rainbow-colored pride merch Target stocks around June, there's a "Made in China" sticker on the back. Always seemed a little weird to me that a country with such terrible human rights policies towards their own LGBTQ+ citizens could be producing a bunch of stuff for pride month, but that's how C
That's kind of like inviting the vampire in for te (Score:2)
You can't give Wall Street types an inch be
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Because cryptocurrencies (especially anonymous ones like Monero) are probably used to get around Swift blockades, it isn't any wonder that China would embrace this as a way to end run around the banking system, and ensure BRICS continues to function even in wartime.
I also am pretty sure, there will be a disparity between the average prole having access to cryptocurrencies versus the government, unless all endpoints are done through some ICP certified app like WeChat.
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it isn't any wonder that China would embrace this
Don't think China has embraced this at all.. they've sought to ban Cryptocurrencies, and they're creating their own which will be the only one their people can use.
I believe from their perspective they have the political clout where they aren't even worried about the Brics trying to sanction China's financial system -- that would end badly for the other nations, most likely.
Besides the Brics have a way to regulate crypto by requiring exchanges block the s
Re: (Score:2)
they always bare the brunt of the ruling class' mistakes
Not all of them.. I would suggest that Sam-Bankman Fried and Mr. Trump be made to share prison cells in a high-security facility for the next 50 years though; it can be adjacent to the cell of Ex-Ceo Alameda research.
a Boost From US Crack (Score:3)
Please, take our financial crack epidemic.
Hong Kong is dead, move on (Score:2)
Hong Kong is just another city in Xitler's circus land now. The citizens have no freedom, privacy, or rights of any kind. The last days of the HK system will only be used by CCP thugs for money laundering and scamming foreign investors in the fake stock market. We closed our company there and moved to another country with less Chinese influence.
Oh good (Score:1)
take your useless crap and go to hong kong.
I'm sure some people will be dumb enough to bite (Score:2)
"Benzene is a banned food supplement therefore it must be good", etc.