According to Ambre Soubiran, the CEO of the leading source of cryptocurrency market data Kaiko, the industry’s “center of gravity” may finally shift to Hong Kong as a result of the United States government’s cold stance to crypto legislation.
Soubiran asserted in an April 1 interview with The Wall Street Journal that Hong Kong will unintentionally benefit from the current crackdown on cryptocurrency in the U.S.
“The U.S. being more stringent these days than ever on crypto and Hong Kong regulating in a more favorable way…is going to clearly shift the center of gravity of crypto assets trading and investments more towards Hong Kong.”
Hong Kong vs. the US
For a long time, the United States has led the cryptocurrency industry but there is a general realization amongst certain crypto enthusiasts that a large number of businesses, investors, and engineers may soon relocate in search of better conditions as a result of the country’s obvious adoption of a forced regulatory strategy.
In an effort to become a hub for financial and digital assets, a proposal was issued in February by the Securities and Futures Commission (SFC) of Hong Kong which is anticipated to serve as a regional trading framework for digital assets.
There has also been a continuous inflow of cryptocurrency enterprises from China when Hong Kong started to make attempts to establish itself as a hotspot for the industry among its nearby cities owing to Beijing’s restriction on the industry.
A joint meeting between the SFA and the Hong Kong Monetary Authority is scheduled for April 28 in order to assist cryptocurrency businesses in establishing domestic banking relationships, as Bloomberg reported on March 28.
Moreover, Danny Talwar, Head of Tax at Koinly, feels that the present de-banking exercise being carried out among crypto-related financial organizations all over the nation may have detrimental effects such as the markets moving away from the United States.
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