Bitcoin Adoption: Hong Kong Is Asia’s Emerging Cryptocurrency Hub

The city of Hong Kong is taking a serious stance on cryptocurrency. After three years of hardship due to COVID-19, the city is vibrant and thriving again as business executives and tourists of all kinds flock back to Asia’s financial hub. New guidance from the Securities and Futures Commission is paving the way.

Since last year’s Hong Kong FinTech Week, regulators have been establishing a comprehensive licensing regime for digital assets. Regulated according to the principle of “same business, same risk, same rules”, digital assets are now being approached with similar rules as traditional financial assets. This has led to landmark moments for the industry this year, with Hong Kong-based licensed exchange HashKey launching a digital asset exchange app and various traditional financial institutions receiving relevant licenses to offer retail trading of digital assets.

This has been made possible by the Hong Kong government’s comprehensive strategy to make Hong Kong a desirable Web3 hub. It was started with the goal of improving foreign investment and talent recruitment.

The Hong Kong government sees the digital asset industry as a driving force behind the return of immigration and foreign investment to the city. Other steps taken by the Hong Kong government in this area include announcing a series of policies focused on attracting overseas family offices through tax incentives and plans to allow Bitcoin to be purchased through compatible exchanges, which are currently being considered by the Hong Kong Investment and Immigration Department. This includes announcing. program.

City leaders hope to restore business confidence and a more diverse digital economy by attracting foreign investment and top talent. Additionally, the updated Immigration Talent Scheme is designed to attract high-earning and foreign graduates from top universities. So far, the Labor Secretary says more applications have been received than expected. All of these efforts will lay a strong foundation for the city to have a diverse talent pool for the digital economy.

Digital asset licensing opens up the opportunity to create a strong cryptocurrency company based in Hong Kong. Metalpha has recently enhanced its Type 4 license (Securities Advisory). This will allow us to expand our advisory and issuance analysis efforts and publish reports on digital assets to qualified investors. This is an important milestone for us and further demonstrates SFC’s confidence in our business approach.

In fact, since the beginning of this year, we have observed strong demand from family offices and public companies asking how to invest in Bitcoin in a compliant manner. Savvy investors who cut through the noise and look beyond the negative headlines are rewarded with clear opportunities to grow and profit from cryptocurrencies and Web3. As a result, we believe more companies will apply for licenses to attract investment, increase business confidence, and pursue new opportunities.

Hong Kong is expected to overtake Switzerland as the world’s leading cross-border asset management destination, with Asia driving growth, according to a recent article in the Financial Times. This large-scale global wealth movement presents a great opportunity for investors looking at digital assets. As regulation of the digital asset industry becomes clearer in the future, Hong Kong will stand out as a city that offers a balanced approach to innovation and risk assessment.

Looking forward to the new year, I am confident that Hong Kong will continue to play a key role in building the Web3 hub and enter into more direct competition with Singapore, which has enjoyed a first-mover advantage in the cryptocurrency space. And this is a good thing. Investors should have more options to choose the best cryptocurrency project or company to work with. For customers, knowing that their service provider is safe and compliant in the eyes of regulators will boost their confidence.

This is a guest post by Adrian Wang. The opinions expressed are solely personal and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.