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Jeremy Allaire, co-founder and CEO of the stablecoin issuer Circle, stated that his company has been closely monitoring the regulatory changes occurring in Hong Kong.
The authorities of the former British territory have recently permitted investors to engage in cryptocurrency trading under a new framework, recognizing their “fundamental value.”
Asia is a ‘Major Area of Interest’
In a recent interview with Bloomberg, Allaire emphasized Hong Kong’s initiatives to position itself as a “very significant hub for digital markets and stablecoins.” Consequently, Circle is paying “very close attention to that,” he remarked.
The executive regards Asia as a crucial region for the sector. It is worth noting that Circle obtained regulatory approval from the Monetary Authority of Singapore (MAS) in November of the previous year. This license allowed the company to provide digital payment token products and facilitate both cross-border and local transactions in the city-state.
The governing body of Hong Kong has recently adopted a favorable stance towards cryptocurrency, unveiling a regulatory framework for the industry at the start of the month. Under the new regulations, digital asset providers are permitted to offer services to retail clients, provided that disclaimers regarding potential investment risks are communicated.
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Some have suggested that Hong Kong’s encouraging approach might indicate that China could begin to embrace the industry. The government of the most populous nation imposed a ban on all crypto-related activities within its borders in 2021.
Furthermore, the subsidiaries of several major Chinese banking institutions, including the Bank of Communications, the Bank of China, and Shanghai Pudong Development Bank, have reportedly extended support to crypto firms located in Hong Kong.
“What’s happening in Hong Kong may be a proxy for ultimately how do these markets grow in Greater China,” Allaire concluded.
Jeremy Allaire, Source: CNBC
Hong Kong Approved Crypto ETFs
In addition to establishing cryptocurrency regulations, Hong Kong has recently embraced cryptocurrency ETFs. Earlier this week, Hong Kong and Shanghai Banking Corporation (HSBC), the largest domestic bank, allowed clients to trade Bitcoin and Ethereum exchange-traded funds.
The approved offerings include CSOP Bitcoin Futures ETF, CSOP Ethereum Futures, and Samsung Bitcoin Futures Active ETF.
Additionally, the bank introduced an educational initiative called the Virtual Asset Investor Education Centre, aimed at educating investors about the risks they may face when entering the ecosystem.
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