Hong Kong is rapidly becoming an attraction site for the crypto industry as the city maintains strong efforts in converting its territory into a global crypto hub. In the latest news, a cryptocurrency data firm, Kaiko, becomes the latest Web3 company to be attracted by Hong Kong’s crypto-friendly regulations.
Kaiko To Relocate Its Asian Headquarters To Hong Kong
According to a report by Bloomberg on March 17, Kaiko has announced its plans to move its Asian headquarters from Singapore to Hong Kong, citing the city’s pro-crypto policies and impressive recovery from covid-related restrictions as reasons, among others.
Providing more insight into the company’s decision, Kaiko’s CEO, Ambre Soubrian, said: “With all of the recent changes and initiatives from the Hong Kong regulatory bodies, we realized that this is clearly where we have to be, where the capital is going to flow in, and where we are seeing a lot of attractiveness when it comes to hedge funds, investors and asset managers.”
Related Reading: Salesforce Teams Up With Polygon For New NFT Management Platform
Kaiko was founded in 2014, with its general headquarters in Paris, France. Over the years, the French company has built a reputation for providing credible market data on digital assets to institutional investors and market participants. Some popular clients of Kaiko include the ICE Global Network, Bank of Canada, Bloomberg, etc.
On Hong Kong’s Push To Become A Global Crypto Hub
Due to the recent troubles of the crypto market, the $1 trillion industry has seen a sterner approach from most governments worldwide, with notable regulatory crackdown actions in the U.S.
In times like this, Hong Kong is one of the few regions that stand out as its administration remains committed to building an enabling environment that facilitates the growth and development of the digital asset industry.
Aside from Kaiko, other players in the crypto industry with plans of building a stronghold in the Chinese territory include Singaporean bank DBS and Seychelles-based crypto exchange, Huobi.
However, it is worth noting that much of the attention directed at Hong Kong is driven by existing policies and the region’s regulatory plans for the crypto space. One of these plans includes allowing individual investors to trade major cryptocurrencies like Bitcoin and Ether, thus, signaling the city’s growing faith in the market.
Moreover, the Hong Kong government plans to introduce a mandatory license for all cryptocurrency exchanges and stablecoin providers operating within its territory.
Related Reading: USDC Minting And Redemption Backlog Almost Cleared By Circle
In general, Hong Kong is attempting to build a robust regulatory framework that encourages digital asset adoption while protecting its citizens against industry crises such as the FTX bankruptcy saga that occurred in November 2022.
That said, the cryptocurrency market is currently bullish amidst the ongoing U.S. banking crisis, which has seen three major U.S. banks shut down due to financial troubles. Bitcoin, the premier cryptocurrency and market leader, is currently valued at $25,853.30, having gained by 5.31% in the last 24 hours.