Hong Kong Crypto Sector

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The retail cryptocurrency market in Asia is about to undergo a massive overhaul. While Singapore is backing away from its crypto-friendly status, Hong Kong is taking further steps to cement its position as a leading cryptocurrency trading centre.

Recent Released: Bitcoin Outflows (BTC) exchanges lose $1.52 billion

Collapse of Terra

The collapse of Terra and other crypto enterprises domiciled in Singapore this year has prompted the Monetary Authority of Singapore (MAS) to take actual measures with crypto legislation. With more lenient regulations, Hong Kong hopes to lure away retail crypto trading.

We don’t set out to compete with other jurisdictions, notably on regulation, MAS chief Ravi Menon said. We must take the measures we deem essential to mitigate the threats facing us. And retail investors are particularly vulnerable to the risks.

As has been widely reported:

Singapore has been ground zero for the crypto market collapse this year. This year’s most notable failures included the Three Arrows Capital hedge fund and the cryptocurrency lending platform Hodlnaut. Menon thinks it’s time for them to tighten up certain crypto rules after all this bad experience.

The head of the central bank told Bloomberg that the most recent measures are among the strongest in the world when it comes to regulating retail access to cryptocurrency. And that’s something we feel is essential.

He continued, saying that he saw no problem with some retail crypto enterprises relocating to more hospitable nations.

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Retail Market Participation Restriction

On Wednesday, the MAS outlined plans to limit consumer access to online marketplaces. This includes restricting access to credit for low-volume buyers of cryptocurrency. Tokens deposited by ordinary investors would be prohibited from being used for lending, staking, or any other activity that would result in a return, according to the MAS consultation document.

Menon noted:

Menon noted that Singapore is committed to become a crypto centre, but stressed that it would do so only through ethical means. As part of this effort, we need to spread the word about the places where tokenization and actual applications for digital assets are being used successfully.

Hong Kong, on the other hand, is shifting to accommodate the cryptocurrency industry. By next March, it hopes to have legalised retail trading and encouraged licencing of cryptocurrency platforms. Both Hong Kong and Singapore will host financial technology conferences the following week. Binance CEO Changpeng Zhao and FTX executive Sam Bankman-Fried will be among the prominent crypto industry veterans in attendance.

Source: Google Trend

By Vil Joe

A writer and editor based out of San Francisco, Vil has worked for The Wirecutter, PCWorld, MaximumPC and TechHive. Her work has also appeared on InfoWorld, MacWorld, Details, Apartment Therapy and Broke-Ass Stuart. In her spare time, she takes too many pictures of her cats, watches too much CSI and obsesses over her bullet journal.

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