Hong Kong About To Play Its Master Move
Times Of Uncertainty
Crypto regulation is currently a bit of a global sore point, especially in the US. The clampdown has been rather heavy, and there appears to be no sign of abating anytime soon. The SEC, in particular, has chosen not to release any clear guidelines, in regard to Crypto and regulation. This has forced many Crypto-based entities to begin exploring opportunities outside of the US. Many Crypto enthusiasts have also chosen to follow suit.
The lack of clarity, compounded by limited operability has managed to frustrate market participants to the point of action. Relocating a business, or even a residency is by no means a small decision. However, many are prepared to do just that, provided, they can continue operating. Something that I have previously mentioned is the objective of “capturing” the Crypto market.
TradFi players want to bring Crypto in under their umbrella. They don’t want an alternative financial system, especially one that can operate independently. What we are currently witnessing is something similar to a boa constrictor squeezing the life out of its prey… and many view escape as the only means of survival. The longer the SEC holds operators in the valley of indecision, the more difficult it becomes to survive.
Enter Hong Kong
Hong Kong has seen this as a perfect opportunity and will begin offering Crypto trading on the first of June. Hong Kong is providing a level of clarity during a time when everyone else is doing just the opposite. However, it needs to be noted that there are some very strict requirements. Furthermore, trading is very much going to be limited to top-tier coins.
However, many are likely to prefer a strict stance as opposed to one of uncertainty and a lack of clarity. It will be interesting to see who decides to open up a Hong Kong arm of their business. Asia has also experienced some challenging times, in regard to regulation and the right to operate as a Crypto business or entity. However, Hong Kong seems quite adamant about establishing itself as a Crypto hub.
Many believe this will provide a positive catalyst for the Crypto market, as a whole, and spark further adoption. Either way, jurisdictions that provide solid frameworks will eventually attract businesses. A business requires absolutes. Governments cannot simply carry on providing half-hearted regulatory frameworks that are forever open to adjustment and revisitation.
Whatever has been brought to the table over the years seems to carry little weight. Viewpoints and guidelines shift with the wind. Seriously, one cannot expect businesses to operate in such conditions, which is why if Hong Kong provides greater clarity it is likely to attract a lot of attention.
Final Thoughts
We are mere days away from Hong Kong entering the Crypto space. Hong Kong’s Securities and Futures Commission (SFC) has already finalized its rulings in regard to retail Crypto traders. Platforms can begin applying for licensing on the 1st of June. What still remains to be seen is how quickly this development takes off, and what effect it will have on the broader Crypto market.
Hong Kong not only wants to incorporate Crypto but also aims to become a WEB3 hub. The aim appears to be to allow the Crypto ecosystem to grow, while simultaneously providing tight regulation. We are going to have to see how this plays out in real terms. Until next time, go well!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
Posted Using LeoFinance Alpha