Hong Kong's Crypto Ambitions Get a Boost From US Crackdown
Hong Kong's attempt to attract cryptocurrency companies is getting help from an intensifying crackdown by American regulators. From a report: The city was once home to a number of prominent companies, including Crypto.com, BitMEX and now-bankrupt FTX. But increasing competition from Singapore, concerns about China's tough approach to crypto and Hong Kong's prolonged and strict response to Covid-19 meant many companies in the sector left. Hong Kong is now determined to bring some of that action back, in contrast with the U.S. In the past few weeks alone, U.S. regulators have cut off access to crypto products and services, targeted crypto friendly banks, brought civil charges against celebrities said to have touted digital assets and sued exchanges including Binance, the operator of the world's largest crypto exchange. Prosecutors have also accused FTX founder Sam Bankman-Fried, who was based in Hong Kong at one point, of conspiring to bribe Chinese government officials in their latest indictment. "The U.S. being more stringent these days than ever on crypto and Hong Kong regulating in a more favorable way...is going to clearly shift the center of gravity of crypto assets trading and investments more towards Hong Kong," said Ambre Soubiran, chief executive of Kaiko, a digital assets data provider based in Paris. "We want to be where our clients are," she said. Hong Kong's Securities and Futures Commission proposed a new licensing framework in February, focusing on investor protection. A senior official said at a briefing that the regulator wanted to prevent a recurrence of the problems that brought down FTX, as well as other fraudulent behavior. More than 20 crypto and blockchain companies from mainland China, Europe, Canada and Singapore have told the government they are planning to establish a presence in Hong Kong, while over 80 firms have expressed interest in doing so, according to official figures.
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