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Digital currencies
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Proposals allowing retail investors to trade in big-cap cryptocurrency tokens on licensed platforms with regulatory oversight would enhance the city’s reputation for prudent financial innovation.

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  • Hong Kong’s new licensing requirements for crypto exchanges come with greater burdens for exchange operators, but many still want a foothold in the city
  • The rules, which now allow for retail trading, came into force this month, marking the first step in Hong Kong’s bid to become a virtual asset hub

Binance’s Zhao Changpeng, Huobi’s Justin Sun, and Animoca’s Yat Siu all touted the promising signs of Beijing’ ‘Internet 3.0’ white paper.

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Readers discuss opportunities for the city to take the helm in the new tech landscape, and how the government can encourage use of its online identity authentication app.

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The city state’s sovereign wealth fund said its senior management and investment team were ‘ultimately responsible’ for investing in the now-bankrupt cryptocurrency exchange, which resulted in a US$275 million writedown.

VTB Bank’s Andrey Kostin warns that ‘it’s very dangerous to rely on America’, after Russia’s second-largest lender lost billions last year upon being cut off from the US dollar and euro.

US and South Korean officials said Pyongyang is boosting efforts to send thousands of tech workers to countries, including China and Russia, to generate revenue.

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China banned cryptocurrency trading in 2021 and Hong Kong turned frosty on the industry as a result, even though it was home to several early cryptocurrency businesses, including the now-bankrupt FTX.

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Hong Kong’s new regulatory framework comes amid the city’s drive to become a global Web3 hub, despite other governments’ growing apprehension for virtual assets.

Revenue in the digital assets market is expected to grow at an annual rate of 16.1 per cent from 2023 to exceed US$102 billion by 2027, with almost a billion users tapping in.

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Some 16 companies – including the three note-issuing banks HSBC, Standard Chartered and BOCHK – will put the e-HKD through its paces, paving the way for a virtual coin the public can use to shop, dine out and make money transfers.

The plea, from parliament’s powerful cross-party Treasury Committee, came one day after EU ministers agreed on tougher tax rules for crypto transactions.

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A unit of Shanghai-based Greenland Holdings is planning to apply for a licence to trade assets including cryptocurrencies, NFTs and carbon credits, according to its CEO.

China is widening a roll-out of its central bank digital currency with more pilot programmes that could help the country bypass Western sanctions and undercut the US dollar’s dominance in global trade.

The Chinese government continues to push blockchain development for industrial use, signalling a belief in the technology despite Beijing’s cryptocurrency ban.

China has long been keen to promote the yuan overseas, as well as reducing its reliance on the US dollar, with the likes of Russia, Brazil and Bangladesh increasing their use of the currency.

Binance.US executives worry that because Zhao was named in a lawsuit from the US Commodity Futures Trading Commission that the company may not be able to acquire certain licences, The Information reported.

While customers lost their investments, SBF and co splurged on private jets for Amazon deliveries, fancy DoorDash meals, a Shaquille O’Neal commercial, resort stays and luxury yachts …

HKMA Chief Executive Eddie Yue said crypto ‘regulations will be tight’ and those who do not like it are ‘welcome to go elsewhere’ in comments weeks ahead of new rules.

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