Hong Kong is the great hope of the crypto world. While the United States and Europe choose regulation and restraint, the Asian metropolis is poised to welcome thousands of investors seeking a free and legal environment to buy and sell cryptocurrencies with open arms.

Changes from June. As Reuters explained, the Hong Kong government, through Finance Minister Paul Chan, announced that it is planning a new regulation that will come into effect from June 1. The legalization of ‘smart contracts’ as well as planned transactions will be examined.

Hong Kong’s proposal contradicts China’s and even Singapore’s. These two powerhouses support blockchain technology but are more conservative about crypto. Meanwhile, Hong Kong plans to allow operators to legally trade tokens.

It was applauded by the major exchanges. Coinbase CEO Brian Armstrong made his point clear. “Without clear rules about cryptocurrencies and a hostile environment from regulators, the United States risks losing its status as a financial center in the long run. Congress needs to act soon to pass clear legislation,” he wrote in a tweet. expressed.

It is a position shared by other great figures in the crypto world. Justin SunFounder of TRON. According to him, Asia is becoming the major focus of crypto investments and the vast majority of investors in the industry move their money there.

Cameron Winklevoss, co-founder of Gemini and one of the first Bitcoin billionaires. expressed “The next upswing will come from the East,” echoing the idea that Asia is now the big hope for crypto investors.

30% of the crypto market is in Asia. Although the United States is the main market and the Middle East and Africa are considered the fastest growing markets, currently the most influential crypto market is South Asia and Oceania. According to a report by Grand View Research, 30% of the revenue of the cryptocurrency industry in 2022 came from that region.

It won’t be free either. Hong Kong is preparing new legislation for virtual asset service providers (VASPs), the name given to cryptocurrencies there. But as Coindesk points out, that doesn’t mean they’ll be “perfectly legal for everyone.” This arrangement will provide a broader framework for accredited investors, but not for individual investors to be excluded.

Do I foresee a change in China? the plan is already Attracting players like Huobi, The big Chinese trade is now in the hands of Justin Sun. These days it has applied for a license to start operating in Hong Kong. Like them, other crypto companies are taking action to start their operations there.

Hong Kong wants to differentiate itself from China, but its future strategies may be linked. The crypto industry isn’t having its best moments, but it’s still a market with great economic traction. Measures like those in Hong Kong serve to attract foreign investment, and it’s a move China might be interested in.

In an interview, Sun explains that Hong Kong is now seen as “one of the experimental regions for crypto development in China” and that “China is moving towards a more crypto-friendly policy.”

Openness to cryptocurrency to encourage the use of digital currencies. For years the Chinese market has been very restrictive when it comes to crypto trading, but there are already voices in the crypto world who believe that China could be the big focus of growth in 2023. Currently, Chinese authorities continue to defend their digital yuan.

Although the proposals of one and the other differ, it is clear that Asian governments want to directly encourage the use of these financial assets.

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