Hong Kong to Legalize Crypto Trading: Report

HONG KONG – Hong Kong has given the green light to crypto trading, making it one of the most accommodating jurisdictions for digital asset business.

The move comes as part of a wider effort to attract more fintech investment and talents to the city. Hong Kong has been a traditional financial hub but lagged behind other jurisdictions in embracing new technologies.

However, the government is now recognising the potential of crypto and blockchain to boost the city’s economy. The decision to allow crypto trading is a major contrast for exchanges based in Hong Kong, which have been struggling to find a friendly regulatory environment.

It is also a fillip for the city’s broader fintech ecosystem, which is looking to capitalize on the growing interest in digital assets. The business consulting firm KPMG recently published a report that found 90% of high-net-worth individuals are eyeing Hong Kong as a place to invest in digital assets. 

With Hong Kong setting the pace, other jurisdictions are likely to follow suit, giving a boost to the global crypto market. One such city-state is Singapore where accredited investors have received approval to operate digital payment token services. 

Hong Kong and Singapore are seen as “jump points” into the broader Asian market by investors such as Anchorage Digital co-founder, Diogo Mónica, who has said, “It’s about being in a regime that’s friendly towards crypto and that businesses want to do business with.”

Despite Hong Kong and Singapore being heavily regulated jurisdictions, both are currently managing up to $550 million in digital assets.