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A Hong Kong lawmaker is extending an invitation to Coinbase, despite news of the SEC lawsuit occurring just one week earlier.
Hong Kong Legislative Council member Johnny Ng has taken to Twitter to invite Coinbase and other global virtual asset trading operators to the financial center, emphasizing the region’s supportive environment.
I hereby offer an invitation to welcome all global virtual asset trading operators including @coinbase to come to HK for application of official trading platforms and further development plans. Please feel free to approach me and I am happy to provide any assistance. pic.twitter.com/bcIi1IjMlc
— Johnny Ng 吴杰庄 (@Johnny_nkc) June 10, 2023
Developing a new ecosystem
In a move signaling its growing acceptance of cryptocurrencies, Hong Kong recently lifted its ban on retail trading of digital assets and has actively encouraged crypto exchanges to obtain licenses within the region.
The Hong Kong Securities and Futures Commission (SFC) has introduced comprehensive guidelines for exchanges, prompting leading firms like Huobi, OKX, and BitMEX to express their intentions to apply for licenses in Hong Kong.
Most recently, the Hong Kong legislator Johnny Ng extended an invitation to Coinbase, highlighting the region’s progressive stance on digital currencies.
Expressing support and assistance on Twitter, Ng encourages global virtual asset trading operators like Coinbase to establish operations in Hong Kong, even suggesting potential stock listing opportunities.
Hong Kong’s Securities and Futures Commission (SFC) has initiated the application process for licenses from cryptocurrency trading platforms, allowing licensed platforms to cater to retail crypto investors since June 1, effectively lifting the ban imposed in late 2020.
As part of the regulatory framework, the SFC has outlined specific guidelines for platform operators, including the mandate to hold liquid assets equivalent to 12 months of operating expenses, excluding virtual assets.
This invitation comes in the wake of recent lawsuits by the United States Securities and Exchange Commission against major industry players, including Coinbase and Binance.
A contrasting approach
While the crackdown on crypto is tightening in the United States, China appears to be welcoming digital asset development with open arms. On June 1, First Digital unveiled a Hong Kong-based USD stablecoin positioning the country as a cryptocurrency-friendly jurisdiction.
Coinbase CEO Brian Armstrong reiterated the allure of jurisdictions such as Hong Kong, recognizing its emergence as a burgeoning crypto hub.
Amidst the ongoing evolution of the cryptocurrency industry, the initiatives undertaken by First Digital and the regulatory measures implemented in Hong Kong and the invitation extended on Twitter signify a dedication to fostering an environment that supports the growth of the sector while upholding compliance with regulatory obligations.