Coinbase moving to Hong Kong
Coinbase moving to Hong Kong? At least that’s what a politician from the SAR wants, inviting international crypto exchanges after new laws allow trading in crypto currencies again. Experts believe a turning point could be taking place in China and Asia.
Coinbase moving to Hong Kong? A turning point is emerging
US Crypto Exchange Might Move to Hong Kong Soon? In fact, the North American state’s leader has been looking for several months to expand global influence in order to remain operational despite regulatory conflicts in the US.
Coinbase is looking to open more branches in mostly small crypto-friendly states. A disintegration due to hostile US authorities should thus be prevented.
Almost at the same time, a change took place in China. The semi-autonomous state of Hong Kong changed the law in favor of the crypto industry. Cryptocurrency trading has been allowed since June. Crypto exchanges are legal after registering with the authorities. Experts believe the People’s Republic could use the autonomous region to try out new policies.
In the meantime, the Hong Kong authorities seem to want to use their new opportunities. The conflicts within the USA come at just the right time.
Johnny Ng Kit-chong is a member of Hong Kong’s Legislative Council. He invited crypto exchanges via Twitter to move their headquarters to Hong Kong. The invitation goes especially to Coinbase. The US company is one of the few crypto exchanges not officially registered in a tax haven.
“I hereby invite all global virtual asset trading platform operators, including Coinbase, to come to Hong Kong to apply for official trading platforms and develop further development plans. Please contact me and I’ll be more than happy to help you.” Like the politician.
A turning point is on the horizon?
Hong Kong apparently set itself the goal of learning from the mistakes of other jurisdictions. Experts believe that the potential success of Hong Kong could mark a turning point in cryptocurrencies in the People’s Republic of China.
Hong Kong provides clear guidelines for crypto businesses that are available online for anyone to view in English. Among other things, these are intended to prevent insider trading and early bankruptcy.
Crypto service providers in SAR require a license and are then subject to oversight by the Securities and Futures Commission (SFC) . Applications from interested companies have been processed since June 1st.
In fact, the rush could be great. Several well-known crypto exchanges have already expressed interest in a license – especially popular Asian providers. These include Huobi, Gate, OKX and Seychelles-registered but US-led exchange BitMEX.
“International crypto firms are making a rush for Hong Kong-based investors who are actively investing in highly volatile products such as warrants and other derivative contracts.” Explains Markus Thielen to Blockworks.
Thielen is head of research at the Matrixport crypto analytics platform. According to him, Hong Kong wants to become the Asian crypto center. The small special administrative zone has a good chance of doing so.
