Why Hong Kong has grown into a crypto hub – WOW Summit CEO
Hong Kong, along with the United Arab Emirates (UAE) and Singapore, has quickly established itself as a hub for financial innovation and a cryptocurrency hub. According to Ivan Ivanov, CEO of WOW Summit International, this innovation is supported by a strong regulatory policy and Hong Kong's status as a special economic region.
Ivanov told Cointelegraph that Hong Kong's unique relationship with mainland China and strong regulation allow Hong Kong to become a sandbox for financial and technical innovation, leveraging startups, new technologies and institutional investors. Ivanov wrote:
“You get the excitement and potential of crypto, but also the stability and security of a well-established financial system. Hong Kong's strong connection with the international market, especially with mainland China, is a truly unique and promising place for crypto.”
The CEO of WOW Summit added that Hong Kong's stablecoin policy, which requires bitcoin issuers to hold licenses and hold fiat reserves in local Hong Kong banks, promotes trust and transparency in the property sector.
Related: Hong Kong's central bank to support companies issuing tokenized bonds
Hong Kong's latest crypto developments
Hong Kong's strong regulatory system creates an attractive climate for investors looking to access cutting-edge technology in finance without fear of losing their money in risky ventures with no legal recourse.
In October 2024, Hong Kong's Financial Services and Treasury Bureau (FSTB) issued ground rules for AI in finance to address AI threats, while still promoting integration into existing systems.
The Hong Kong Monetary Authority (HKMA) also announced a set of projects in October 2024. The initiative between the HKMA, the Central Bank of Brazil and the Bank of Thailand explores cross-border tokenized settlements between the three countries.
Hong Kong's cyberport Web3 Network – a state-run business hub promoting digital asset creation – now hosts more than 270 blockchain companies. The Cyberport Network has added over 120 organizations in the past 17 months alone.
In November 2024, ZA Bank, Hong Kong's largest digital bank, launched retail crypto trading for its customers. The Hong Kong government has proposed exempting institutional investors from capital gains to encourage investment.
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