Gate.io Market Watch: Hong Kong’s New Crypto Policy Triggers Market Rise
Restrictions on retail crypto trading and virtual asset service providers are loosening in Hong Kong as the region’s Securities and Futures Commission (SFC) proposes new regulatory requirements for licensed trading platforms. This has led to renewed interest in companies, projects, and assets linked to crypto and the region.
As the SFC’s new crypto license regime outlines, Hong Kong will allow centralized trading platforms to operate so long as they are licensed with the regulator. Additionally, proposed rules on digital asset trading would allow retail investors to access “large-cap tokens” through approved exchanges. The SFC has not yet specified which cryptocurrencies but indicated it could include Bitcoin (BTC) and Ether (ETH).
New regulations attract global companies
Renewed progress toward regulating the digital asset space has already led to several companies announcing plans to obtain licenses and begin operations in Hong Kong. However, some major companies, like the global crypto exchange Gate.io, are already active in the region, working with regulators and industry peers to help ensure the safe and stable introduction of regulated digital asset services.
Hippo FS, Gate Group’s Hong Kong-based company, obtained the Trust or Company Service Provider (TCSP) license last August, enabling the company to provide virtual asset custodian services. Following the license acquisition, Gate.io joined closed-door discussions with regulators on the future of cryptocurrency and exchanges in Hong Kong and participated in several events to discuss regulation and promote blockchain education.
Additionally, alongside other cryptocurrencies closely associated with entities in the region, GateToken (GT) experienced a spike in price on Gate.io following the SFC’s new policies.
The re-emergence of Hong Kong in the crypto sphere
Although some have indicated that more regulatory clarity is needed, these new regulations are likely to help grow locally-established crypto-related companies and attract international ones, furthering the digital asset sector in Hong Kong.
Since Hong Kong is a global financial powerhouse, similar to that of New York, London, and Singapore, with a mature fin-tech industry, its open-arms stance towards crypto may cause it to re-emerge as an international hub for blockchain and digital assets, as Gate.io CEO Dr. Lin Han put it, “the new mecca for cryptocurrency in Asia.” So with everything said, Asia may just be the region to kickstart the next bull run.
