Hong Kong Legislator Invites Coinbase to Become Digital Hub of Crypto Industry

Previously, Hong Kong’s ambition to become a crypto hub may not have been sustainable, according to a Chinese crypto veteran whose digital asset business in China was scuttled by a regulatory crackdown.

In an interview with Bloomberg, Chinese crypto pioneer Bobby Lee, who founded China’s first Bitcoin exchange and founded a US-based crypto storage provider, warned Hong Kong could change its stance on cryptocurrencies within three to five years and announced a ban.

The statement comes as Hong Kong will issue crypto exchange licenses from next month. Lee claims the officials who let the exchange get licensed may have had exaggerated expectations of connecting with mainland China because trading in digital assets remains banned in China.

“The fantasy for exchanges is to think that if officials let us get a license, then maybe they will start some sort of crypto-connect trade link with mainland China,” said Lee, quoted from CryptoNews, Wednesday (31/5/2023).

Hong Kong’s New Crypto Regulatory Regime Comes Into June 1st

Hong Kong’s securities watchdog has completed its consultation paper on the proposed regulatory regime for crypto trading platforms, which will come into force from June.

Under the new rulebook, the city-state will allow retail investors in the city to trade certain large-cap tokens on licensed exchanges, with safeguards such as knowledge tests, risk profiles and reasonable exposure limits in place.

Hong Kong was previously a digital asset hub but started to lose ground in mid-2022 amid growing concerns about the ambiguity of city regulations on cryptocurrencies and the emergence of potential rivals such as Singapore and Dubai which are seen as friendlier to the crypto industry.