Amidst ambiguous regulatory environments that threaten the USA’ place as a crypto hub, Hong Kong could turn into a world nexus for digital property.
The Securities and Futures Fee (SFC) of Hong Kong has drafted guidelines for buying and selling platforms that digital property and is searching for public suggestions by March 31. A finalized set of rules is predicted to take impact on June 1. For many of final yr, the SFC didn’t seem excited by granting retail buyers entry to crypto below its digital asset licensing framework. At Hong Kong FinTech Week in November 2022, nonetheless, it signaled a willingness to alter course.
The regulator is searching for opinions on whether or not licensed platforms can serve retail buyers and what investor safety measures ought to be in place. It’s suggested that crypto buying and selling platforms planning to turn into licensed in Hong Kong assessment and revise their programs and controls. In distinction, these with out plans to use ought to put together for an orderly closure of their Hong Kong operations.
With Hong Kong taking the lead, the brand new crypto rules could present a mannequin for different nations to observe, resulting in extra favorable circumstances for digital asset buying and selling worldwide.
Notably, the 2022 Worldwide Crypto Readiness Report ranked Hong Kong as probably the most crypto-ready location, adopted by Switzerland and the USA. Hong Kong ranked first in a number of classes, together with the variety of blockchain startups per 100,000 residents and the variety of cryptocurrency ATMs per capita. This, coupled with the truth that Hong Kong has no capital positive aspects tax on crypto, makes it a really perfect vacation spot for buyers and entrepreneurs trying to capitalize on the numerous alternatives the cryptocurrency business gives.
A Hong Kong information outlet reported that ChangeNOW, a non-custodial crypto platform, would search a license from the SFC to proceed offering safe, compliant crypto trade providers in Hong Kong and promote cryptocurrency adoption there.
In keeping with ChangeNOW, its Hong Kong person numbers surged by 62% in February.
As well as, it revealed that Hong Kongers are most excited by TRON-based stablecoin USDT TRC20 and Polygon-based USDC, in addition to the Shiba Inu (SHIB) altcoin.
Main causes for this development could also be Hong Kong customers’ rising curiosity in cryptocurrencies in addition to custody-free entry to digital property supplied by ChangeNOW – particularly within the wake of the current FTX scandal, which introduced consciousness to the dangers related to centralized exchanges, prompting customers to modify to platforms that don’t maintain customers’ property in custody.
Different exchanges lined as much as launch SFC-compliant crypto buying and selling operations in Hong Kong embrace Huobi World, OKX, and Gate.io.
Utilizing its anti-money laundering and risk-prevention mechanisms, ChangeNOW has efficiently recovered roughly $20.5 million misplaced to hacks and fraud, proving its capability to maintain dangerous actors at bay. That is akin to a well-maintained safety system in a bodily constructing, which guards towards outdoors intrusion and helps give the folks inside a way of security and safety. When it really works because it ought to, it may be a strong deterrent to malicious actors and convey peace of thoughts to the folks inside.
ChangeNOW made headlines in late 2021 by returning over $15 million in crypto to Compound, which misplaced over $89 million as a consequence of an inner error. In the newest testomony to ChangeNOW’s unwavering dedication to safeguarding the crypto neighborhood, its AML system prevented $1.5 million from being misplaced in the course of the huge assault on Algorand wallets.
ChangeNOW’s success in combating fraudulent actions can encourage different crypto business individuals to create a safer person atmosphere.
