Jeremy Allaire, co-founder and CEO of Stablecoin Issuer Circle, said his company is closely monitoring regulatory developments in Hong Kong.
The authorities of the former British colony recently allowed investors to trade cryptocurrencies under a new regime because they carry “intrinsic value.”
Asia is a ‘huge focus area’
at recent days interview For Bloomberg, Allaire pointed to Hong Kong’s efforts to establish itself as a “hugely important hub for digital markets and stablecoins.” As such, Circle pays “very close attention to that,” he added.
The CEO sees Asia as an important region for the industry. I remember that circle Receive Regulatory approval from the Monetary Authority of Singapore (MAS) in November last year. The license enabled the company to offer digital payment token products and perform cross-border and domestic transactions in the city-state.
Hong Kong’s governing body has taken a pro-crypto stance recently, introducing a regulatory framework for the sector at the beginning of the month. Under the new rules, digital asset providers can provide services to retail clients, assuming there is a disclaimer of potential investment risks.
Some have suggested that Hong Kong’s positive approach may indicate that China may begin to prepare for the industry. The government of the most densely populated country in the world banned All cryptocurrency-related activities on its territory in 2021.
Moreover, subsidiaries of some of China’s largest banking institutions, including Bank of Communications, Bank of China, and Shanghai Pudong Development Bank, are supposed to supported Crypto companies based in Hong Kong.
“What happens in Hong Kong may ultimately be a proxy for how these markets will grow in Greater China,” Allaire concluded.
Jeremy Allaire, Source: CNBC
Hong Kong said ‘yes’ to cryptocurrency ETFs
Besides implementing cryptocurrency rules, Hong Kong Recently jumped On the cryptocurrency ETF bandwagon. Earlier this week, the Hong Kong and Shanghai Banking Corporation (HSBC) – the largest local bank – enabled customers to buy and sell Bitcoin and Ethereum ETFs.
Approved products include CSOP’s Bitcoin Futures ETF, CSOP Ethereum Futures, and Samsung Bitcoin Futures Active ETF.
In addition, the bank has launched an educational program called the Virtual Asset Investor Education Center, which aims to educate investors about the risks they may face when joining the ecosystem.
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