While other regulators, such as the United States Securities Exchange and Commission (SEC), seem to have turned their back on crypto, Hong Kong has continued to support the industry’s standing firmly on its commitment to become a crypto hub.
Over the past few months, the Hong Kong government has initiated several plans showcasing the region’s support for the crypto industry. Recently, Hong Kong’s Financial Secretary, Paul Chan, disclosed the government’s plan to invest in the developing Web3 ecosystem.
To be part of the early core contributor of Web3, the Hong Kong government invested HK$50 million ($6.5 million) into the island city’s 2023-24 budget – a move targeted at the Web3 ecosystem.
The invested funds were said to be used to boost several necessary sectors that could foster Web3 adoption, including cross-sector business cooperation, organizing workshops, and so on.
So far, the Island City project has aided Hong Kong’s effort to support emerging technology, strengthening its status as Asia’s leading financial center.
In a recent report published by Barron, the Hong Kong Monetary Authority plans to initiate a round table by April 28, 2023, to facilitate straight dialogue alongside the crypto industry.
Hong Kong’s approach towards crypto has been significantly different from other Asia financial centers, such as Singapore, which have been rather discreet with their moves on crypto.
Paul Chan commented on Hong Kong’s effort towards promoting the crypto industry and said:
In order for Web3 to steadily take the road of innovative development, we will adopt a strategy that emphasizes both ‘proper regulation’ and promoting development.
Chan further mentioned “financial security, investor education, and anti-money laundering measures.” Kishore Bhindhi, an attorney based in Hong Kong, added and told Barron that Hong Kong’s moves are showcasing the region’s aim to become a home to cryptocurrency.
Bhindh noted that in the future, the Island City project could turn to crypto’s application to traditional financial services, for example, tokenized bonds and securities.
US Regulator Continues Crackdown
Meanwhile, the US regulator has expressed a further crackdown on the crypto industry. In February, the SEC ordered Paxos, the issuer of Binance branded stablecoin, BUSD, to halt the issuance of the stablecoin.
Additionally, the SEC has since pursued staking services, deeming these assets securities. Recently, the United States Commodity Futures Trading Commission (CFTC) also filed a lawsuit against Binance, one of the leading crypto exchanges in the industry.
Regardless of the news circulating in the industry, the global crypto market has maintained composure. Over the past 24 hours, the global crypto market capitalization has surged by 3.2% at the time of writing, with a value still above $1.2 trillion.
Featured image from Shutterstock, Chart from TradingView