Hong Kong Treasury and Financial Services Secretary Christian Hui said Monday that his country has drawn the attention of several bitcoin (BTC) and cryptocurrency companies since late 2022 and that dozens of companies are seeking to establish a physical presence in Hong Kong. the Asian nation in this first quarter.

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During a forum, Hui noted that Hong Kong attaches “great importance” to virtual assets, and that as of the end of 2023, the government has received applications from more than 80 international cryptocurrency-related companies to physically establish themselves in the autonomous city.

As the official detailed, out of the 80, at least 23 mainland Chinese companies showed interest in having a physical presence in Hong Kong. It is followed by those of Canada, countries of the European Union, Singapore, the United Kingdom and the United States.

Among these companies were cryptocurrency exchanges, companies that operate with blockchain infrastructure, blockchain security companies, wallet providers, payment companies and companies dedicated to building the web 3.0 ecosystem.

Hui specified that these requests were made within the framework of the Political Declaration for the development of the virtual assets sector, published in 2022, which sets out the position of the Hong Kong government regarding the ecosystem. In February, Hui highlighted that his country has “the potential to compete in the cryptocurrency industry.”

Although Hui did not identify them, one such company is the Huobi exchange. This exchange house moved its headquarters from Singapore to Hong Kong, attracted by the regulation of the sector. This was reported by the CEO of that company, Justin Sun, last February.

Exchange regulation starts in June

Hui recalled that a law regulating the operation of cryptocurrency exchanges was recently passed in Hong Kong. The Hong Kong Securities and Futures Commission opened the public consultation on the proposed requirements for the regulation of these companies in February.

According to the secretary, said law implies a licensing regime for these cryptocurrency service providers, which will begin to operate as soon as June 2023.

“Through the establishment of a comprehensive and clear regulatory system, we hope that more quality virtual asset companies will establish business in Hong Kong,” he said.

Cryptocurrency Companies Drawn to Hong Kong

What Hong Kong Financial Services Secretary Christian Hui says is related to what was stated by representatives of the cryptocurrency sector. Brian Armstrong, CEO of Coinbase, suggested that the proposed regulation in that country has captured the attention of several companies, as reported by CriptoNoticias.

All this, in Armstrong’s opinion, will allow China to regain its leading role in the cryptocurrency market. The above, because the United States “runs the risk of losing its status as a financial center in the long term, without clear rules on cryptocurrencies and a hostile environment from regulators.”

Armstrong coincided with Cameron Winklevoss, one of the leaders of the Gemini exchange. For him, if Asia resumes its leading role in the market, “it will be a humbling reminder that cryptocurrencies are a global asset class.“

Although Hui did not mention it, it must be remembered that Hong Kong is emerging as a center for the development of the bitcoin market with the sponsorship and support of its counterpart, China.

In February, the central government liaison office of the Asian giant, a country that claims sovereignty over Hong Kong, has been working with Hong Kong officials to develop a testing ground for crypto assets.

take from: https://www.criptonoticias.com/