Hong Kong legislators invite Coinbase amid SEC probe

By: Michael Wilson

Hong Kong legislators invite Coinbase amid SEC probe

June 11, 2023 10:00 PM

Hong Kong's progressive legislation and commitment to being a digital hub create a conducive atmosphere for the industry's further development.


A Hong Kong politician has welcomed Coinbase and other cryptocurrency exchanges to set up shop in the territory, touting the city's progressive position on cryptocurrencies.


On Twitter→, Legislative Council member Johnny Ng offered his help and encouragement to "all global digital asset trading operators" like Coinbase. He also teased at the possibility of a stock listing. This follows recent US Securities and Exchange Commission (SEC) cases against major industry heavyweights including as Binance and Coinbase.


In contrast to the cautious attitude taken by several Western countries regarding cryptocurrencies, Hong Kong has taken a proactive posture. Hong Kong Financial Secretary Paul Chan declared the government's commitment to building a robust environment for crypto and fintech in January 2023. As a result, Hong Kong has been working hard to develop rules and put in place compliance mechanisms to foster the growth of the cryptocurrency business.

 


The Hong Kong Monetary Authority (HKMA) recently announced→ plans to lay the basis for the launch of a retail central bank digital currency (CBDC). This effort, announced on June 9, aims to examine the benefits of CBDCs as a payment method for ordinary transactions as well as to improve client access to cryptocurrency exchanges.


Ng's invitation exemplifies Hong Kong's commitment to establishing a digital hub for the cryptocurrency industry. OKEx and Huobi both made early moves to become authorized as service providers of virtual assets in the region.


The favorable attitude towards cryptocurrencies in Hong Kong has also piqued the curiosity of leading international technology firms. In January, Samsung, a major electronics company in South Korea, announced the launch of a Bitcoin (BTC) futures active exchange-traded fund on the Hong Kong Stock Exchange.


Furthermore, allegations arose in mid-February stating that Chinese government officials were giving strategic clearance to Hong Kong's pro-crypto measures. This acknowledgment from Chinese officials emphasizes the importance of Hong Kong's activities in the crypto field and its possible effect on the global digital currency ecosystem.