Hong Kong Prepares To Take Over Singapore’s Retail Crypto Sector
The growth and increasing cryptocurrency adoption have brought different reactions in many places. Some are entirely embracing the industry and its numerous opportunities with innovative ideas. But some are retracing their steps within the crypto space using stricter regulatory measures.
Recently events in some Asian regions on the retail digital asset landscape are taking some interesting twists. For example, Hong Kong and Singapore seem to be moving in opposite directions regarding their stance on digital retail.
Singapore is gradually retracing from its previous friendly disposition on digital assets and its activities. But Hong Kong is preparing for new moves to enhance its presence in the digital space.
According to a recent report, Hong Kong plans to indulge in retail crypto trading. The region has been reputed to have a low interest in digital asset trading. But its recent move targets to undo the harm on its crypto industry due to China’s restriction.
Hong Kong To Establish Mandatory Licensing Program
A report from Bloomberg revealed that Hong Kong local authorities plan to establish a mandatory licensing program. Such a move will enable whitelisted digital asset companies to launch retail trading products in the region. Also, the region has slated the plans to start in March 2023.
The success of this plan is an excellent feat for Hong Kong. It will mark its groundbreaking initiative in reaffirming its financial freedom from the mainland. However, Beijing may still have to consent for the plan to scale through.
Hong Kong’s plan for expansion using retail trading is geared toward its reputation as an international financial hub. This is a benchmark that is highly coveted by other regional jurisdictions.
Hong Kong regulators are searching for prominent digital assets to facilitate the initiative. However, they may not likely go for Bitcoin since Chia has banned BTC and others in 2021.
Singapore Retreats On Retail Crypto Participation
On its part, Singapore is withdrawing its steps from the retail sector. The reasons are drawn from the collapse of the Singapore-based Terra, its ecosystem, and other digital asset companies. Hence, the Monetary Authority of Singapore (MAS) has taken stricter measures with crypto regulations.
MAS chief Ravi Menon released some statements regarding the contrasting relaxed digital asset rules in Hong Kong. Menon stated they are not competing with other jurisdictions over crypto regulations. Instead, they have set things right with the necessary measure to control risks that could harm retail investors.
Previously, Singapore was in the middle of the digital asset decline of the year. Some of the major crises in the crypto space centred in Singapore.
These include the fall of the crypto hedge fund Three Arrows Capital (3AC) and Hodlnaut, a crypto lending firm. But, according to Menon, tightening some crypto norms is the right move in their crypto regulations.Source