{"id":12064,"date":"2023-09-15T13:18:14","date_gmt":"2023-09-15T13:18:14","guid":{"rendered":"https:\/\/prosfunds.com\/markets\/crypto\/evaluate-hong-kongs-crypto-friendliness-for-long-term-presence\/"},"modified":"2023-09-15T13:18:16","modified_gmt":"2023-09-15T13:18:16","slug":"evaluate-hong-kongs-crypto-friendliness-for-long-term-presence","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=12064","title":{"rendered":"Evaluate Hong Kong’s Crypto Friendliness for Long-Term Presence"},"content":{"rendered":"
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Ethereum (ETH)\u00a0co-founder\u00a0Vitalik Buterin<\/strong>\u00a0has issued a word of caution to cryptocurrency projects considering establishing their operations in\u00a0Hong Kong<\/strong>.\u00a0<\/p>\n

Speaking at the Web3 Transitions Summit in Singapore, Buterin emphasized the need to evaluate the stability of the Hong Kong government’s crypto-friendliness before committing to the region.\u00a0<\/p>\n

He raised concerns about the potential impact of future regulatory, political, and other unknown events on the city state’s current friendly environment.<\/p>\n

\u201cI don’t understand Hong Kong well. I understand even less the complicated interaction between Hong Kong and the mainland lately,\u201d Buterin reportedly said.\u00a0<\/p>\n

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\u201cObviously, it’s very friendly now. But the big question that I’m asking and that I think anyone is asking is: how stable is the level of friendliness?\u201d<\/p>\n<\/blockquote>\n

In contrast to mainland China’s broader crackdown on cryptocurrency trading and mining, Hong Kong has actively embraced crypto firms, even encouraging banks to collaborate with them.\u00a0<\/p>\n

In October 2022, the Hong Kong government\u00a0released\u00a0its policy statement on Virtual Asset Development, clarifying its stance on virtual assets.\u00a0<\/p>\n

Additionally, in December, the city state implemented its new regulatory framework for crypto last month.\u00a0<\/p>\n

The new rulebook\u00a0allows retail investors\u00a0the ability to trade virtual assets, instead of restricting digital assets trading to professional investors and traders with at least $1 million in bankable assets.<\/p>\n

The\u00a0Securities and Futures Commission (SFC)<\/strong>\u00a0of Hong Kong has also started providing licenses to crypto exchanges.\u00a0<\/p>\n

Still, Buterin claimed it is hard to judge whether the Hong Kong government would continue supporting the crypto industry in the future.\u00a0<\/p>\n

\u201cTo me, that’s the key variable that I think is invaluable to understand,\u201d Buterin continued.\u00a0<\/p>\n

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\u201cIf they can convince people that there is stability of the friendliness, then it’s in a good position. But that’s where I feel the challenge lies.\u201d<\/p>\n<\/blockquote>\n

Hong Kong Politician Addresses Buterin’s Concerns<\/h2>\n

Johnny Ng, a Hong Kong Legislative Council member, has\u00a0invited Buterin to come\u00a0and visit the city state in order to ease his concerns.\u00a0<\/p>\n

In a recent post on X, Ng said he would \u201ccoordinate with relevant institutions and enterprises to share the situation in Hong Kong.\u201d<\/p>\n

The lawmaker said that Hong Kong boasts a stable policy framework for cryptocurrencies, emphasizing that its strategies and regulations have garnered broad social consensus and have undergone comprehensive procedures.\u00a0<\/p>\n

Ng further highlighted the city’s willingness to develop policies surrounding virtual assets, welcoming global compliance companies to establish their operations in the region.<\/p>\n

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Ng also responded directly to Buterin\u2019s concerns, saying that Hong Kong’s policies “will not change overnight.”<\/p>\n

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\u201cAll relevant strategies and regulations have gone through major social consensus and complete procedures. Therefore, I can tell Mr. Vitalik that Hong Kong’s policies are very stable.\u201d<\/p>\n<\/blockquote>\n

Buterin has recently\u00a0visited various Asian countries, including India, Japan, Taiwan, Palau, and Singapore.<\/p>\n

He has expressed delight at the level of engagement exhibited by local developer communities in these countries, noting the significant advancements on the research side, particularly the extensive work on zero-knowledge (ZK) and privacy solutions.\u00a0<\/p>\n<\/p><\/div>\n