The cryptocurrency exchange Australia-based Independent Reserve is looking into setting up shop in Hong Kong, a city that continues to strive to become a cryptocurrency hub.
The Hong Kong Securities and Futures Commission (SFC), which will take effect in June, published a proposed licensing regime for crypto exchanges on Feb. 20.in line with its ambitions to become Asia’s next cryptocurrency hub.
Independent Reserve co-founder and CEO Adrian Przelozny told Cointelegraph that the “friendly” licensing regime makes Hong Kong a worthy destination to establish a new base, something his company is seriously considering.
“Right now, it looks very interesting […] The recent announcement by Hong Kong regulators makes it look like a friendly jurisdiction.”
“We see Hong Kong as a good opportunity for Independent Reserve, and we are always looking for new areas in Asia where we can expand our business,” he added.
The possible move would follow in the footsteps of its Huobi and OKX counterparts.
Under the new licensing regime, Hong Kong-based cryptocurrency companies must comply with various measures related to safe custody of assets.such as Anti-Money Laundering, Know Your Customer, Terrorist Financing Countermeasures, and Conflict of Interest Disclosures and Audits.
Przelozny said his team will visit Hong Kong next week to meet with banks, regulators, lawyers and compliance experts to determine whether the location is a good fit for the company.
Regarding the region’s political relationship with China, Przelozny believes that China is testing a more relaxed regime for cryptocurrencies in Hong Kong.
If successful, he thinks China could follow suit:
“The Chinese government is using Hong Kong as a test network to experiment with a looser cryptocurrency regime and see what impact it has on the area’s business landscape. If they see it as a positive, I think there is a possibility that they will roll it out across China and ease the existing restrictions.”
Justin Sun, CEO of Tron, made similar observations in a December 2022 Bloomberg interview.
believes that China is using Hong Kong as a “test base” to make a final decision on its policy stance.
However, Przelozny is cautious that it only represents a “transient experiment” that could be reversed in the future.
If Independent Reserve is happy with the regulatory landscape, Przelozny says the last box to check would be how expensive it is to open a store there and what he thinks the return on investment for doing so will be.
Independent Reserve operates as an authorized virtual asset service provider in Singapore.
It also recently launched Bitcoin.com.au after buying the domain for $2 million (A$3 million).
Longstanding Australian crypto exchange Independent Reserve has bought https://t.co/caP4K5Kwnn.https://t.co/ococz49Hwe pic.twitter.com/lRHaPi5vhe
—Independent Reserve (@indepreserve) March 23, 2023
Australian crypto exchange Independent Reserve has bought
More than 80 cryptocurrency companies from mainland China and other countries have lately expressed interest in establishing themselves in Hong Kong, according to a March 20 statement from Christian Hui, Secretary of Treasury and Financial Services.
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