A new center of gravity for crypto in Hong Kong

According to Ambre Soubiran, CEO of Paris-based institutional crypto market data company Kaiko, Hong Kong may become the “center of gravity.” Therefore, its welcoming attitude toward cryptocurrency trading and investments make Hong Kong a very attractive spot for investors.

Ambre Soubiran added that the industry’s “center of gravity” may finally shift to Hong Kong. Such a shift could result from the United States government’s cold approach to cryptocurrency legislation.

Soubiran asserted that Hong Kong would unintentionally benefit from the current crackdown on cryptocurrency in the U.S.

Soubrian implies that with the U.S. restrictive regulatory environment on cryptocurrency, there will be a definite shift in favor of Hong Kong. Due to a more favorable environment,  trading and investing in crypto assets would make Hong Kong more suitable.

Soubiran expressed her company’s desire to be intact with its clients.

After FTX’s demise in November 2022, the American government has taken a more assertive stance against cryptocurrencies. Senator Elizabeth Warren recently claimed that they are assembling an “anti-crypto army.” Yet, Hong Kong has been trending the opposite way.

The Hong Kong government first announced ambitions to establish a crypto hub by implementing progressive laws to aid top-tier crypto and fintech companies in January 2023.

Besides, Hong Kong’s Securities and Futures Commission (SFC) on February 20 proposed a crypto licensing framework. Their main goal is to provide consumer protection without inhibiting innovation. Albeit, the law has not yet been fully worked out.

More and more companies keep expressing interest in shifting their crypto assets to Hong Kong

According to Christian Hu, the secretary for financial services and the Treasury in Hong Kong, more than 80 companies involved with virtual assets already showed interest in opening offices there.

Furthermore, he mentioned that 23 cryptocurrency firms, in particular, had already said: “they planned to create their presence.”

The Hong Kong Monetary Authority and SFA will host a joint conference on April 28. The conference aims to assist crypto businesses in setting up domestic banking partnerships, according to a March 28 Bloomberg story. Yet another encouraging news coming out of the special administrative region of China.

According to reports, Chinese institutions like the Shanghai Pudong Development Bank, the Bank of Communications, and the Bank of China have begun enquiring with or providing banking services to Hong Kong-based cryptocurrency businesses.

Besides, midway through March, Soubiran disclosed that Kaiko is considering moving the Asian-Pacific division’s headquarters to Singapore. It is a response to the latter’s supportive stance on cryptocurrency. Therefore, Kaiko is on its way to Hong Kong.

In an interview with Bloomberg, she said: “While we’re seeing an enhanced attractiveness of Hong Kong in the region, we are relocating. What we’re seeing is a clear support for more clarity on the regulatory framework in Hong Kong.”