June 13, 2023
By Anjali Kochhar
Hong Kong, known for its proactive regulation and aspiration to become a digital hub, has invited leading cryptocurrency exchange Coinbase and other global virtual asset trading operators to establish operations in the region. Legislative Council member Johnny Ng publicly expressed his support and assistance to these companies via Twitter, signalling Hong Kong’s progressive stance on cryptocurrencies.
Ng’s invitation comes at a time when the United States Securities and Exchange Commission (SEC) has initiated lawsuits against major industry players like Binance and Coinbase. Despite these challenges, Hong Kong has embraced a proactive approach towards cryptocurrencies. In January 2023, Hong Kong Financial Secretary Paul Chan announced the government’s dedication to fostering a strong ecosystem for crypto and fintech. Since then, Hong Kong has been diligently formulating regulations and implementing compliance measures to support the expansion of the cryptocurrency industry.
Highlighting its commitment to becoming a digital hub, Hong Kong’s Monetary Authority (HKMA) recently announced its intention to lay the groundwork for a retail central bank digital currency (CBDC). This initiative, revealed on June 9, aims to explore the benefits of CBDCs for everyday transactions and enhance customer access to cryptocurrency exchanges.
Legislator Johnny Ng’s invitation demonstrates Hong Kong’s ambition to position itself as a leading digital hub for the crypto industry. Previously, crypto exchanges such as OKX and Huobi were among the first to apply for virtual asset service provider licenses in the region.
By inviting Coinbase and other global virtual asset trading operators, Hong Kong demonstrates its commitment to fostering industry growth and creating an enabling environment for cryptocurrency businesses. Despite the ongoing scrutiny faced by the industry, Hong Kong’s proactive regulation and dedication to becoming a digital hub make it an attractive destination for cryptocurrency exchanges looking to expand their operations.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.