The whole crypto community is buzzing as Hong Kong government officials plan to legalize the buying and selling of cryptocurrencies. According to many sources, the city plans to become a long-term trading hub within the crypto industry ahead of the United States.
Hong Kong’s crypto ban is becoming a thing of the past as the city will open its gates to institutions to increase crypto activities. This news is a huge development amid the increasing regulations in the US. Many experts are already warning the US government that they will soon lose their place as the major crypto hub if they continue with their strict regulations.
Opening the crypto market for several firms and institutions will ensure that money coming from the Chinese market will be entering into the industry. However, the Hong Kong crypto ban on individuals remains pending when they officially announce its removal. The city is making proactive plans and creating a favorable regulatory framework that will ensure the existence of a crypto hub.
A Twitter user @NoodleofBinance was one of the first sources that broke the news saying, “On June 1st, 2023, Hong Kong will officially make crypto purchase & sell, trading, fully legal for all of its citizens. Expect a huge influx of big money from the East. Asian currency-based stablecoin coming out of HK will be a certainty as well.”
From the version of @NoodleofBinance, the Hong Kong crypto ban might be lifted for both individuals and organizations.
Bitcoin Bullish On Hong Kong Announcement
Many crypto analysts said the new development in Hong Kong has made Bitcoin bullish. Crypto YouTuber Lark Davis said that several companies and organizations are already applying for exchange-traded funds (ETFs) in Hong Kong.
“HUGE! Hong Kong is about to bring MASSIVE Chinese money to #bitcoin.
1 Launched BTC & ETH futures ETFs
2 Samsung looking to launch spot BTC ETF
3 DBS (Singapore’s biggest bank) seeking approval to offer BTC in HK.
4 IB (337 billion broker) launches BTC & ETH trading,” Lark Davis said.
Banks in Hong Kong are already applying for licenses that will allow them to operate and allow their users to trade cryptocurrencies. A reliable crypto news source Beincrypto.com reported that Singapore’s largest bank, DBS, is already planning to get a license to operate and trade cryptocurrencies in the city.
Coinbase CEO Brian Armstrong
Coinbase CEO Brian Armstrong has commented on the issue, saying that the United States is at risk of losing its place as the world’s number one crypto hub if it is fully opened in Hong Kong.
Over the past years, the United States has been going head to head with crypto firms and making them pay huge fines over unnecessary issues. Recently, the SEC labeled Kraken exchange as an illegal institution and made them pay about $30 million.
Other regulatory issues crypto firms such as Binance are facing could make them move their headquarters to Hong Kong when it fully opens its gates to institutions. “America risks losing its status as a financial hub long term, with no clear regulations on crypto and a hostile environment from regulators,” Coinbase CEO Brian Armstrong said on Twitter.