• Kaiko, the cryptocurrency market data provider based in Paris, is relocating its Asian headquarters from Singapore to Hong Kong.
• The city’s pro-crypto policy pivot and emergence from Covid-related restrictions were key factors that influenced the move.
• Hong Kong is set to allow retail investors to trade larger tokens such as bitcoin (BTC) and ether (ETH) later this year, with a mandatory licensing regime for stablecoins due by 2023-2024.
Kaiko Relocates to Hong Kong
Kaiko, the cryptocurrency market data provider based in Paris, is set to relocate its Asian headquarters from Singapore to Hong Kong, driven by the latter’s efforts to cement itself as a global leader in the digital asset space. The city’s pro-crypto policy pivot and emergence from Covid-related restrictions were also key factors that influenced the move Kaiko’s CEO, Ambre Soubiran said in a Bloomberg interview on March 16.
What Is Driving This Moce?
As Hong Kong strives to develop crypto rules that encourage growth while safeguarding investor interests, the city is also learning from past bankruptcies like the FTX exchange, positioning itself for a rebound from a $2 trillion market rout. While the US has been cracking down on crypto, and Singapore is considering stricter rules following the FTX fallout, Hong Kong is set to allow retail investors to trade larger tokens such as bitcoin (BTC) and ether (ETH) later this year, with a mandatory licensing regime for stablecoins due by 2023-2024. According to Soubiran, Hong Kong’s regulatory landscape is changing positively and Kaiko wants to support the institutionalization, growth and establishment of the digital asset class in the city.
Challenges Facing The Crypto Industry
The crypto industry remains in a deep downturn after a bubble in token prices last year causing investors to flee. As a result several companies including Coinbase Global Crypto.com and Huobi slashed thousands of jobs others are waiting for crypto recovery and Hong Kong’s revamped digital asset rules before committing scarce investment funds. Despite this Kaiko’s Head of Asia Pacific Sean Lawrence is set to relocate from Singapore to Hong Kong by end of March Lawrence suggested that figuratively something like nine out of 10 people in crypto are discussing returning back into Hong Kong somehow A new licensing regime for crypto exchanges is expected be implemented on June 1st 2021
Hong kong Aims To Foster Digital Asset Sector
Hong kong’s pivot towards fostering digital asset sector comes part of broader effort restore credentials cutting edge financial center after experiencing months political unrest 2019 It hopes become hub technology innovation capital markets development promote green finance solutions facilitate block chain applications cross border payments provide infrastructure support foreign exchange businesses raise capital through initial coin offerings etc
Hong kong appears be emerging leader quickly shifting towards welcoming environment cryptocurrencies Though many challenges remain uncertain future ahead it’s clear government committed establishing friendly regulations attract more business local international level which could potentially lead increased investments better access services related blockchain technology