Hong Kong Facilitates Operational Permits For Global Crypto Companies

Hong Kong gave the green light to US crypto companies. (Photo; Doc. Blockmedia)

JAKARTA - Hong Kong Legislative Council member Johnny Ng invited a global crypto exchange to apply for an operating license in Hong Kong, following a recent crackdown by the US Securities and Exchange Commission (SEC) on unregistered crypto exchanges and securities tokens.

Realizing that recently there has been a lot of news about crypto exchanges being dealt with by US regulators, Hong Kong legislators gave the go-ahead to crypto companies in the US to operate there.

"I hereby invite all global virtual asset trading operators, including Coinbase, to come to Hong Kong and apply to become an official trading platform and further development plans," said Johnny Ng.

"Please contact me and I am happy to provide any assistance," the legislator added.

Hong Kong recently updated its regulatory framework for cryptocurrencies in an attempt to become the center of innovation and crypto. The new law comes into effect on June 1.

Hong Kong Securities and Futures Commission (SFC) stated that their new regulatory regime "is trying to cover all dimensions of public interaction with virtual assets, providing protection for investors and market integrity while managing key risks for financial institutions."

The US SEC has tightened action against unregistered crypto exchanges, including Binance and Coinbase. The regulator is also trying to freeze assets owned by Binance US.

Coinbase CEO Brian Armstrong has confirmed that their exchange platform does not list securities. He stressed Coinbase's commitment to engaging in legal battles with the SEC to establish clear regulatory guidelines for the cryptocurrency industry.

Armstrong also highlighted that Coinbase had tried to comply with SEC Chief Gary Gensler's advice several times and "registered." However, he expressed his frustration, saying it was not possible. "We've tried," he said.

Meanwhile, Gensler insists that the rules regarding crypto exchanges are clear and that most crypto tokens, except bitcoin, are securities. However, many industry participants and lawmakers sharply criticized Gensler and the SEC over the law enforcement-focused approach in regulating the cryptocurrency industry.

The Hong Kong legislator comments show the country's efforts to attract global crypto companies and strengthen its position as a center for cryptocurrency innovation and trading in Asia.

Along with these developments, attention to cryptocurrency regulations is increasing, as decision-making and regulatory action have had a significant impact on the industry in the future.