• Kaiko, a cryptocurrency market data provider based in Paris, is relocating its Asian headquarters from Singapore to Hong Kong due to the latter’s pro-crypto policy pivot and emergence from Covid-19 restrictions.
• Hong Kong is set to allow retail investors to trade larger tokens such as Bitcoin (BTC) and Ether (ETH), with a mandatory licensing regime for stablecoins due by 2023-2024.
• The city’s efforts to develop crypto rules that encourage growth while safeguarding investor interests are part of a broader effort to restore its credentials as a financial center after experiencing unrest and protests in 2019.
Kaiko Relocates Headquarters
Kaiko, the cryptocurrency market data provider based in Paris, is set to relocate its Asian headquarters from Singapore to Hong Kong, driven by the latter’s efforts to cement itself as a global leader in the digital asset space. The city’s pro-crypto policy pivot and emergence from Covid-related restrictions were also key factors that influenced the move Kaiko’s CEO, Ambre Soubiran, said in a Bloomberg interview on March 16.
Hong Kong Crypto Rules
As Hong Kong strives to develop crypto rules that encourage growth while safeguarding investor interests, the city is also learning from past bankruptcies like the FTX exchange, positioning itself for a rebound from a $2 trillion market rout. While the US has been cracking down on crypto, and Singapore is considering stricter rules following the FTX fallout, Hong Kong is set to allow retail investors to trade larger tokens such as bitcoin (BTC) and ether (ETH) later this year, with a mandatory licensing regime for stablecoins due by 2023-2024.
Attractiveness To Investors
According to Soubiran, Hong Kong’s regulatory landscape is changing positively, and Kaiko wants to support the institutionalization, growth, and establishment of the digital asset class in the city. Challenges facing the crypto industry remain significant; however several companies are waiting for a crypto recovery before committing scarce investment funds. The head of Asia Pacific at Kaiko anticipates relocating by end of March 2021 due other people in cryptos returning back or planning too return back soon.
Licensing Regime For Crypto Exchanges
A new licensing regime for crypto exchanges is expected to be implemented on June 1st 2021 . This would ensure better protection for investors which would further promote trust among them . As Hong Kong plans towards developing policies which will not only foster but also safeguard investment opportunities within its financial sector , it hopes of restoring it’s credentials as one of cutting edge financial center after experiencing unrest & protests back in 2019 .
In conclusion , HK’s pro – crypto policy pivot & emergence form covid – 19 restrictions makes it an attractive destination for hedge funds , investors & asset managers . This along with its new regulatory changes & initiatives could make HK one of most reliable place when it comes investing into digital assets .