Crypto Companies Eye HK & Asia Amid Regulatory Clarity on Digital Assets
September 14, 2023
The tightening regulatory environment in the U.S. is causing a significant shift in the global crypto landscape. Many crypto companies, feeling the heat of lawsuits and enforcement actions from U.S. agencies, are now looking to Asian markets for a revival. The greater regulatory clarity in Hong Kong, Singapore, and Japan is luring these firms away from the U.S. market.
This shift in focus was evident during a high-profile Asia crypto conference in Singapore. The conference, attended by leaders in the crypto industry, followed the news of the Binance.US laying off over 100 staff due to the American clampdown.
One of the notable attendees, Tom Farley, a former New York Stock Exchange president and current CEO of Gibraltar-registered digital asset exchange Bullish, announced plans to apply for a license in Hong Kong, following the city’s new crypto regulatory framework.
Hong Kong is leading the charge in providing a clear legal environment for crypto companies. Its first licenses for crypto trading platforms were recently awarded to HashKey Exchange and OSL, enabling legal retail trading of tokens in the city. HashKey has even partnered with Standard Chartered Plc to offer fiat currency deposit and withdrawal services.
These developments underscore a strategic shift in the crypto industry, with Asia’s regulatory clarity proving an attractive alternative to the uncertain legislative environment in the U.S. This trend signifies a broader realignment in the global crypto market, with jurisdictions like Singapore, Japan, and South Korea also striving to provide a balanced, investor-friendly framework for crypto firms.
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