The ambitions of the Hong Kong crypto hub have boosted the markets, which will provide an easy path for deep-pocketed Chinese institutions. Bitcoin rises to its highest price since mid-June 2022.
The bitcoin and crypto markets are rising today, buoyed by positive news that Hong Kong will open the doors to receive digital assets and investors.
Hong Kong has ambitious plans to become an Asian crypto hub. In June, it will officially make buying, selling, and trading crypto completely legal for all of its citizens. That also includes mainland Chinese institutions.
In the midst of a war against cryptocurrencies waged by US regulators, markets have reacted to this positive news with a 9% gain on the day.
@NoodleofBinance tweeted on Wednesday that “on June 1st, 2023, Hong Kong will officially make crypto purchase & sell, trading, fully legal for all of its citizens. Expect a huge influx of big money from the East. Asian currency based stablecoin coming out of HK will be a certainty as well.”
A fully open Hong Kong means money from China can easily flow back into digital assets even though the cryptocurrency ban for individuals remains.
The news stems from a January announcement by Paul Chan, Hong Kong’s Financial Secretary, who said that the city plans to become a crypto hub with a strong regulatory framework.
Hong Kong Crypto Center
Crypto YouTuber Lark Davis noted that he was extremely bullish on Bitcoin. In addition, several exchange-traded funds (ETFs) have been applied for in Hong Kong.
On Feb. 13, BeInCrypto reported that Singapore’s largest bank DBS plans to apply for a digital asset license. This will allow the bank to offer cryptocurrency trading to Hong Kong customers.
On Feb. 16, Coinbase CEO Brian Armstrong commented on the development, in the following terms:
“America risks losing its status as a financial hub long term, with no clear regs on crypto, and a hostile environment from regulators. Congress should act soon to pass clear legislation. Crypto is open to everyone in the world and others are leading. The EU, the UK, and now HK.”
Industry analysts have predicted that an Asian stablecoin will also emerge in the next market cycle. China and its neighbors have been working hard to distance themselves from the hegemony of the US dollar.
BTC Price Bomb
Bitcoin prices have been boosted by this rare bit of FOMO. The asset rose 11.4% on the day to reach $24.681. This is its highest price since mid-June 2022, about eight months ago.
However, BTC still has a long way to go before seeing previous highs. It is currently 64.3% below its November 2021 peak of $69,000.
By Audy Castaneda
