Hong Kong steps in as ‘options dwindle’ globally – FinTech Chair
Crypto-friendly Hong Kong remains adept at giving its citizens access to crypto trading despite other jurisdictions “taking a step back”, claims the head of the FinTech Association of Hong Kong (FTAHK).
Speaking to Cointelegraph at the WOW Summit in Hong Kong in March, FTAHK Chairman Neil Tan said that while Singapore and the US are apparently backing away from allowing crypto retail, “Hong Kong is moving forward.”
On June 1, a licensing regime for crypto exchanges will come into effect, and Tan said it is “also going to include retail.” The licensing guidelines are expected to be released sometime in May.
“If there is access to [crypto] in a legal and regulated way, then I am sure that participants will come. It is a “build it and they will come” because there are no other options. The alternatives are actually diminishing.”
In February, the region’s securities regulator proposed giving retail traders access to licensed crypto platforms in its proposals for licensing regimes for Virtual Asset Service Providers (VASPs).
It noted that denying access could push traders to unregulated foreign platforms. Currently, these platforms can only serve accredited professional investors.
In January, Securities and Futures Commission (SFC) chief executive Julia Leung Fung-yee said retail traders would be limited to “highly liquid” digital assets, but gave no further explanation.
Along with offering what many consider to be an attractive legal framework for crypto, Hong Kong is also focusing its efforts on attracting talent and infrastructure providers – what Tan called “the back end”.
Related: China’s crypto stance unchanged by moves in Hong Kong, executive says
He added that both the Chinese and Hong Kong governments recognize the opportunities in the region and are taking steps to try to support incoming talent.
“There’s a lot of talent across the border and right now there’s a lot of unemployment,” Tan said of China. “There is a lot of talent coming from Big Tech and so on that can come into Hong Kong.”
Infrastructure to support crypto also needs to be in place for Hong Kong to realize its virtual asset ambitions, Tan said. “When the platforms come, they come with that infrastructure. They bring the infrastructure with them as well to deliver the product,” he added.
He added that the opening of the financial industry to digital assets was “just a natural progression” as cryptocurrencies “become a little more prominent.”
“People are actually adopting [crypto] inside their portfolios. Whether you’re talking about the retail side, high net worth or institutional investors, everybody’s looking at their portfolios and trying to get that kind of exposure.”
“Now we are at it again. We’ll open it.”
Asia Express: Justin Sun’s SUI Farming Sins, PEPE’s Wild Race, 3AC’s Oyster Philosophy
