Hong Kong’s new embrace of cryptocurrencies has led to a wave of exchanges flocking to the country.
Here are a few companies that have shown interest in being part of Hong Kong’s dynamic market:
Accordingly, Huobi has just revealed its plans to launch a trading platform in Hong Kong on May 26. All are ready to provide cryptocurrency trading services, including BTC and ETH to users in the near future.
The Swiss-registered Gate Group, the company behind the Gate.io exchange, also participated. Gate has just launched Gate.HK, and like Huobi, Gate.HK is in the licensing process with the Securities and Futures Commission of Hong Kong (SFC).
Cryptocurrency-focused financial services provider Amber Group, from Singapore, is also reportedly considering a move to Hong Kong.
OKX previously served local traders through its app, while BitMEX will open its doors to Hong Kong users on Monday.
Hong Kong’s securities regulator has implemented tougher rules for digital asset companies, including a cryptocurrency licensing regime, starting June 1.
Hong Kong is a ‘gold rush’ for crypto platforms
In order to comply with the new regulations, all trading platforms and exchanges must apply for a license, or face fines and potentially imprisonment.
Markus Thielen, head of research at Matrixport, believes that with government and financial regulator approval, Hong Kong has the potential to regain its status as the leading crypto hub in Asia. .
Thielen said Hong Kong is the “most convenient and hassle-free” city in the world, located in the heart of Asia.
“There is currently a gold rush from international crypto companies to cater to Hong Kong-based retail investors actively involved in highly volatile products such as warrants and securities. other derivative contracts. With nearly 100 local billionaires, the city is full of tycoons and well-funded family offices that can fund crypto companies moving into the city.”
According to Matteo Greco, an analyst at blockchain investment firm Fineqia, Hong Kong’s regulatory approach appears to foster a more collaborative and supportive environment for crypto businesses than countries such as the United States or China, the latter of which have restrictions on cryptocurrency trading.
However, challenges still exist and it is too early to determine whether the final outcome will be favorable. For instance, there are still cases where Hong Kong banks refuse requests to open local bank accounts from crypto businesses, Greco said.