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Hong Kong Working Hard to Improve Its Reputation as a Financial Centre

Hong Kong has declared itself to be crypto-friendly, but this can be easily reversed if things get challenging

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HONG KONG: Hong Kong is extending a red carpet to the finance sector soiled by scandals and bankruptcies to restore its reputation as a financial hub. The vertical city is making every effort to woo mainland China bitcoin companies to rebase in the city, as cryptocurrency trading was outlawed in China in 2021.

John Lee, the chief executive of Hong Kong, and other government officials are praising the industry and hosting 100 conferences and parties focused on cryptocurrencies. 

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The chairman of Hong Kong cryptocurrency exchange HashKey, who welcomed 13,000 attendees to its Hong Kong Web3 Festival, claimed that the Hong Kong government is serious about building an international virtual asset centre. As of November, HashKey and OSL were the only two licenced cryptocurrency exchanges in Hong Kong.

Xiao claimed that the government is now attempting to underline how Hong Kong has different regulations than mainland China. However, many people are still dubious of Hong Kong’s claims of having a robust regulatory system for cryptocurrencies due to China’s crypto ban. One crypto venture capitalist expressed concern due to the sensitivity of the subject.

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Hong Kong has declared itself to be crypto-friendly, but this can be easily reversed if things get challenging. At least 10 businesses, including OKX, Bybit, and Huobi, have stated or plan to apply for licences in the vertical city, according to businesses and media reports.

Businesses that have left nations like Canada and the United Kingdom sponsored this week’s ritziest parties in the vertical city.OKX reserved a rooftop venue with a view of Victoria Harbour, and Bybit hosted a private dinner for influential businesspeople. 

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The SEC accused cryptocurrency entrepreneur Justin Sun of fraud, but Sun claims the charges are unfounded and accuses the regulator of targeting crypto players.

At the Web3 Festival, the vertical city government officials reaffirmed their commitment to fostering the Web3 industry under “appropriate” regulations and hinted at increased regulation of decentralised finance (DeFi) apps. 

Financial Secretary Paul Chan Mo-po stated that the foundation of Web3 development is investor safety and the stability of the financial system and that appropriate regulations are necessary to create a sustainable development environment and a more favourable environment for development.

Binance’s co-founder and CEO, Zhao Changpeng, connected via video for a fireside chat. The US Commodity Futures Trading Commission filed a lawsuit against Binance last month for “sham” compliance with domestic laws. The company has come under scrutiny due to its ties to Binance.US, a local business that is supposed to function independently.

The event immediately followed the WOW Summit, another Web3 gathering that took place in the city last month. Despite the threat of additional restrictions, attendees of the most recent Web3 conference exhibited modest optimism about the possibilities of Hong Kong’s Web3 development.

Also Read: Financial Concerns Outweighed by Inflation as Central Banks Continue to Tighten Policy


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