• Hong Kong’s legislative council extended support to all crypto trading operators, such as Coinbase, to establish a base in the region.
• Coinbase CEO Brian Armstrong said he expects changes in the US regulatory policies post the 2024 elections, hinting his support for the Republicans.

Amid the hostile crypto environment led by the recent crackdown by the US SEC, other crypto-friendly jurisdictions like Hong Kong are looking to make the most of it. In the latest, Hong Kong regulators have invited crypto exchange Coinbase and other players to set up a base in their region.

Johnny Ng, the legislative council, expressed his support and assistance to all “global virtual asset trading operators” such as Coinbase. He also hinted at other potential stock listing opportunities. Johnny Ng wrote:

I hereby offer an invitation to welcome all global virtual asset trading operators including @coinbase to come to HK for application of official trading platforms and further development plans. Please feel free to approach me and I am happy to provide any assistance.

While Western countries have turned aggressive and hostile against cryptocurrencies and related firms, Hong Kong has undertaken a contrary approach. It has turned extremely proactive over the past few months with regulators working to build a crypto-friendly framework.

Additionally, starting this month of June, Hong Kong has also allowed retail investors to trade top cryptocurrencies such as Bitcoin and Ethereum. In January 2023, the Financial Secretary of Hong Kong, Paul Chan, expressed the government’s commitment to creating a robust environment for crypto and fintech. Since then, Hong Kong has been working hard to create rules and guidelines to support the growth of the cryptocurrency industry. They are focused on implementing measures to ensure compliance and foster the development of this sector.

Becoming A Crypto Hub

With its recent actions, Hong Kong is planning to establish itself as the crypto hub of Asia. Huobi and OKX are among the first exchange to apply for a crypto services provider license in the region. This favorable approach toward digital assets has also attracted interest from some of the global financial firms.

On the other hand, the Hong Kong Monetary Authority (HKMA) has announced its plans to lay the foundation for a retail central bank digital currency (CBDC). This initiative, announced on June 9, aims to explore the benefits of CBDCs for everyday transactions and to make it easier for customers to access cryptocurrency exchanges. The HKMA wants to study how CBDCs can improve payment methods and provide more convenience to the public.

Earlier this year, reports suggested that Hong Kong has the backing of the Chinese government for undertaking pro-crypto initiatives. The Chinese authorities also highlighted the significance of Hong Kong’s efforts in the crypto space.

Coinbase Won’t Abandon the US Market

On Sunday, June 11, in an interview with the Wall Street Journal, Coinbase CEO Brian Armstrong said that despite the regulatory challenges, the crypto exchange has no plans to abandon the US markets. However, he said that he is looking forward to changes in the US regulatory policies post the 2024 election. Armstrong added that the Republican party is more friendly to regulations.

Speaking something similar, Gemini exchange founders Winklevoss twins stated that the war against cryptocurrencies would cost the US Democrats the 2024 elections.