Crypto crisis (again): is Hong Kong the next crypto hub?

Following the 2022 FTX collapse, the global crypto market faces renewed uncertainty, reigniting investor concerns and diminishing worldwide crypto enthusiasm. Meanwhile, regulatory bodies worldwide are intensifying their scrutiny, adopting varying tactics, from the US Securities and Exchange Commission (SEC)'s lawsuits to Hong Kong Securities and Futures Commission (SFC)'s proactive regulations.

In the US, the SEC designates numerous cryptocurrencies as securities, resulting in stricter obligations. The world's largest crypto exchange, Binance, confronts US court prosecution for fraud and alleged securities and derivatives violations by the SEC. Binance isn't alone – other crypto entities and even NFT projects are grappling with investigations, evolving regulations, licensing challenges in the US, and some European nations.

Conversely, Hong Kong's new crypto licensing framework establishes regulatory guidelines for exchanges and has started issuing licences for retail trading since August. Notably, local exchanges HashKeyand OSL received SFC's licence upgrades, making them the first approved for retail services. SEBA Bank, which only established its Hong Kong presence in late 2022, also secured in-principle approval for citywide retail services. On the other hand, JPEX, a Hong Kong-operated crypto exchange which did not apply for the licence, is facing money laundering and fraud allegations locally.

The future potential of Hong Kong as a crypto hub remains an intriguing question. Will it be a lasting heaven or a transient sanctuary? Join the debate on this topic at Revive Tech Asia 2023, featuring ex-regulators and industry experts.