Jeremy Allaire, CEO of Circle, the issuer of the second most liquid stablecoin, USDC, expects to see huge demand for various digital assets, including Dogecoin, Bitcoin, Ethereum and Cardano, in emerging markets including Hong Kong and central China.
His confidence is when Dogecoin, the most liquid cryptocurrency in the top 10 by market capitalization, recovers to relieve selling pressure in the second half of June. As of writing, DOGE is trading at $0.065, up 13% from its June 2023 lows. However, the coin is still in bearish formation, down 40% from its April 2023 highs.
Dogecoin and cryptocurrencies remain under pressure despite the hopes in Hong Kong
Allaire’s comments track an encouraging formation in the cryptocurrency market at the close of the first half of 2023. After weakness in May 2023, prices rebounded strongly from mid-June as the bulls reversed losses and retested the 2023 peaks. As bitcoin prices soared, so did the cryptocurrency market, and leverage other coins, including Solana, Dogecoin, and Ethereum.
Although the prices of some altcoins are now declining, DOGE prices are holding steady and are likely to continue the trend observed in the third week of June, bolstered by fundamental actions, including the ongoing events in Hong Kong. According to Allaire, Hong Kong, a Special Administrative Region of China, will be critical, primarily as it seeks to establish itself as a major financial hub in finance and cryptocurrency.
Speaking at the World Economic Forum in Tianjin, China, Allaire He said The department is watching Hong Kong closely. His confidence comes as Hong Kong said it will adopt a technology-neutral approach to regulating cryptocurrencies. In this regard, the approved rules will apply to all crypto assets.
Hong Kong regulations for cryptocurrency trading
As part of this approach, which observers say is progressive; Hong Kong is positioning itself as a trading center for cryptocurrencies, as per the current regulations on the exchanges. For example, file The Hong Kong Securities and Futures Commission (SFC) requires all exchanges to be registered and licensed before offering services.
At the same time, it must comply with Anti-Money Laundering (AML) and Combat Financing of Terrorism (CFT) regulations while ensuring that it maintains all its records, including the identities of the dealers, including the amount involved.
On June 26, documents leaked show up HSBC Hong Kong has already started allowing trading of Bitcoin and Ethereum exchange-traded funds (ETFs) of instruments listed on the Hong Kong Stock Exchange. Although nothing has been confirmed by the region’s largest bank, their decision gives them an advantage against institutions in the US.
Despite numerous requests, the Securities and Exchange Commission (SEC) has not yet approved a bitcoin spot ETF. Recently, BlackRock filed for a Bitcoin spot ETF that is generating interest in the cryptocurrency, pushing Bitcoin prices towards $31,000 and helping Dogecoin’s steady bulls.
Featured image from Canva, chart from TradingView