According to Ambre Soubiran, CEO of Paris-based institutional cryptocurrency market data provider Kaiko, the icy approach of the US government to cryptocurrency regulation could end up shifting the industry’s “center of gravity.” to Hongkong.
The United States has been at the forefront of the cryptocurrency sector for quite some time. However, with the government appearing to be taking a regulation-by-app approach, there is a growing feeling among some that a significant number of companies, developers and investors will soon be turning elsewhere to work in more favorable environments.
1 million tech jobs are at risk of going overseas. As the US goes down a path of regulatory uncertainty, the EU, UK, UAE, Hong Kong, Singapore, Australia, and Japan are all creating environments for crypto to flourish so that they can capitalize on the next wave of innovation. pic.twitter.com/2UMkFxajcM
—Coinbase (@coinbase) March 29, 2023
A million tech jobs are at risk of going overseas. As the US navigates a path of regulatory uncertainty, the EU, UK, UAE, Hong Kong, Singapore, Australia and Japan are creating environments for cryptocurrency to flourish so they can capitalize on the next wave of innovation.
Speaking to The Wall Street Journal on April 1, Soubiran suggested that the recent crackdown on cryptocurrency in the United States will inadvertently help Hong Kong in its goal of becoming a major cryptocurrency hub:
“The fact that the United States is stricter than ever on cryptocurrencies and that Hong Kong regulates more favorably… is clearly going to shift the center of gravity of trading and investing in crypto assets towards Hong Kong.”
“We want to be where our customers are,” he added.
The US government has become increasingly aggressive towards cryptocurrency since FTX’s collapse in November 2022, with Senator Elizabeth Warren even recently declaring that they are building an “anti-cryptocurrency army.” Hong Kong, however, has been moving in the other direction.
“This industry we’ve been trying to destroy, that’s grown to a trillion dollars in value, and that rallied 30% as our banking system required a $2 trillion backstop, and in 10 years added 10,000s of American jobs…
Has no value or good qualities.”
-The White House
—Ryan Selkis (@twobitidiot) March 21, 2023
“This industry that we’ve been trying to destroy, which has grown to a trillion dollar value, and rallied 30% when our banking system needed $2 trillion of backup, and in 10 years added 10,000s of jobs American work…
It has no value or good qualities.”
-The White House
In January, the Hong Kong government initially outlined plans to become a cryptocurrency hub by rolling out progressive regulation to support high-quality cryptocurrency and fintech companies by 2023.
Although regulation has yet to be fully finalized, the Hong Kong Securities and Futures Commission (SFC) proposed a cryptocurrency licensing regime on Feb. 20, which aims to offer consumer protection without stifling innovation.
So far, more than 80 virtual asset-related companies have expressed interest in setting up shop there, according to a March 20 speech by Hong Kong Treasury and Financial Services Secretary Christian Hu.
He also noted that 23 cryptocurrencies, specifically, have already indicated that they “plan to establish their presence.”
Adding to the positivity coming from China’s special administrative region, Bloomberg reported on March 28 that the Hong Kong Monetary Authority and the SFA are set to hold a joint meeting on April 28 to help cryptocurrencies establish national banking associations. .
Make Hong Kong Great Again!!! pic.twitter.com/K8FV55R1cb
— Arthur Hayes (@CryptoHayes) March 28, 2023
Let’s make Hong Kong great again!!!
Chinese banks such as Shanghai Pudong Development Bank, Bank of Communications, and Bank of China have reportedly started offering cryptocurrency banking in Hong Kong or have conducted cryptocurrency inquiries.
Soubiran also revealed in mid-March that Kaiko is looking to move the headquarters of its Asia-Pacific unit from Singapore to Hong Kong in response to the country’s crypto-friendly stance.
“What we’re seeing is clear support for more clarity in the regulatory framework in Hong Kong,” he told Bloomberg in an interview, adding that “as we see Hong Kong’s greater attraction in the region, we are relocating.”
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