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Independent Reserve, an Australia-based crypto exchange, has been contemplating exploring opportunities in Hong Kong. The region has been in the limelight due to its all-accepting and friendly licensing regime, which has drawn crypto organizations.
Due to its liberal licensing regime, Hong Kong could make a worthy destination for a virtual asset hub. Although Hong Kong has accepted the industry, there could be other factors that businesses might have to consider.
Last month, the Hong Kong Securities and Futures Commission (SFC) released a proposal encompassing the licensing regime for crypto exchanges. The proposed licensing regime is supposed to take effect in June.
These changes in the licensing regime shall be aligned so that Hong Kong can become the next digital asset hub.
Independent Reserve co-founder and CEO Adrian Przelozny confirmed that the crypto exchange is looking to expand its base in Hong Kong,
Right now, it is looking very interesting. The recent announcement by the regulators in Hong Kong does make Hong Kong look like a friendly jurisdiction.
Elements That Have Been Included In The Licensing Proposal
The proposed licensing regime will come into effect in the next two months. Crypto companies must comply with these new measures, which focus on the safe custody of assets.
The licensure regime includes Anti-Money Laundering, Know Your Customer, Counter-financing of terrorism countermeasures, conflict of interest disclosures, and audits.
If Independent Reserve manages to set up a base, it will join Huobi and OKX, the two other crypto exchanges that have set up operations in Hong Kong.
Adrian Przelozny stated that the Independent Reserve team would meet with Hong Kong banks and regulators. The exchange also looks into establishing compliance to determine if the location suits the company.
Przelony also commented on the region’s political atmosphere with China and stated that China is now testing a more flexible crypto regime in Hong Kong,
If successful, China also might follow through with the same:
The Chinese government is using Hong Kong as a testnet to experiment with a looser cryptocurrency regime to see what impact that has on the business landscape there. If they see it as a positive thing, then I think there’s a chance they’ll roll it out through China and loosen their existing restrictions.
80 Crypto Firms Have Been Interested In Setting Up In Hong Kong
More than 80 cryptocurrency firms across mainland China and elsewhere have also expressed interest in establishing a presence in Hong Kong, as stated by Christain Hui, the Secretary of Financial Services and the Treasury, on March 20.
Independent Reserve operates as a licensed crypto-asset service provider in Singapore. The cryptocurrency exchange recently launched Bitcoin.com.au after purchasing the domain name for $2 million (approximately $3 million in Australian pounds).
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