Hong Kong to legalize cryptocurrency trading
In a move expected to increase the flow of capital from China into digital assets, Hong Kong will legalize the purchase, sale, and trading of cryptocurrencies for all of its citizens in June. The move will also include mainland Chinese institutions.
On June 1st, 2023, Hong Kong will officially make crypto purchase & sell, trading, fully legal for all of its citizens
— Crypto熊猫 (@NoodleofBinance) February 15, 2023
Expect a huge influx of big money from the East
Asian currency based stablecoin coming out of HK will be a certainty as well
The announcement sparked a positive reaction in the crypto market, which rose 9% amid the regulator's US war on cryptocurrencies.
The positive sentiment about Hong Kong is based on public information in December highlighting the government's legal framework that allows certain crypto service providers to fall under the same regulatory area as banks.
Hong Kong Finance Minister Paul Chan has expressed hope that by 2023 local regulators and the government will be ready to work with fintech startups and cryptocurrencies.
At an event organized by the state-run Cyberport Incubator, Chan emphasized that Hong Kong has become a hub for the world's leading virtual device companies.
Crypto service entities expanding in Hong Kong
Over the last few months, Hong Kong has been seriously discussing crypto regulation strategies, with several cryptocurrency service companies attempting to establish a presence in the city.
U.S.-based Interactive Brokers has moved to team up with crypto exchange OSL Digital Securities in a joint Hong Kong crypto push. Meanwhile, Singapore’s largest bank, DBS, plans to apply for a digital asset license to provide crypto trading services to its customers in Hong Kong.
Crypto market surge and bitcoin FOMO
TRON founder Justin Sun has repeatedly stated that capital from China and other Asian countries will drive the next bull market.
As a result, some traders have begun to move assets from North America to Eastern Asia, with regional bitcoin flows reaching $7.7 million over a seven-day average, according to Chanalysis data.
Per CoinMarketCap data, the industry’s total market cap surged by 6.8% on Wednesday alone, from around $1.07 billion to $1.15 billion.
Bitcoin prices have risen as a result of this rare bout of FOMO, with the asset rising 8.8% on the day to $24,533. However, BTC has a long way to go before reaching previous highs, as it is currently 64.4% below its November 2021 peak of $69,000.
As Hong Kong prepares to become an Asian crypto hub, investors and the crypto market will closely monitor its progress, hoping to increase investment and growth in the digital asset sector.