The special administrative unit in Hong Kong is also contemplating a way to introduce a compulsory licensing regime for stablecoin issuers as early as this year.
Kaiko, a French crypto market data provider, will shift its headquarters from Singapore to Hong Kong for greener pastures in the upcoming center for Web3 companies.
In an interview with Kaiko’s Chief Executive Officer Ambre Soubiran, it was disclosed that the company will be moving forward with the decision amid the city’s regulatory changes towards virtual tokens.
Soubiran revealed that the latest developments and undertakings from Hong Kong regulators towards virtual assets will entice hedge funds and asset managers along with their capital to the city.
Kaiko’s Head of Asia-Pacific Sean Lawrence will transfer from Singapore by the end of the month, according to a report. Kaiko offers firms cryptocurrency market data from more than a hundred centralized and decentralized exchanges.
According to statistics, more than eighty virtual asset-related companies are planning to migrate to Hong Kong with the city’s efforts to become the leading Web3 center.
Christian Hui, who is the Secretary of Financial Services and Treasury, stated that Hong Kong has been a tempting city to establish headquarters for several crypto companies worldwide.
Hui also said that since the Hong Kong administration rolled out its policy statement on Virtual Asset Development in October 2022, the number of companies eyeing a place in the city has gone up. The firms mainly include virtual asset exchanges, blockchain infrastructure, and blockchain network security businesses.
According to lawyers and consultants, the interested firms have also included Chinese Securities companies and banks drawn by the likelihood that retail trading in Bitcoins and ETH tokens will be authorized on the city’s exchanges, Hashkey and OSL.
Yu Jianing, who organized tours for China Startups visiting Hong Kong, claimed that he witnessed more than five hundred investors and entrepreneurs exploring opportunities in crypto and other blockchain enterprises recently.
The city has also been suggesting new ideas for the digital and crypto center since last year when it welcomed companies eager to offer securitized token services to pitch proposals.
In the last month, the Securities Futures Commission, or SFC, circulated draft regulations for digital asset trading platforms, that also included a requirement for crypto exchanges to register for licenses that authorize retail investors to trade some specific large-capitalization tokens.
According to Henry Chong, Chief Executive Officer of Hong Kong-based digit securities exchange Fusang, the message from the administration can be summarised as calling for a way to regulate tokens and cryptocurrency in general, in a more conventional way. That is, in a way that traditional finance and traditional financial establishments are run.
The special administrative unit is also contemplating a way to introduce a compulsory licensing regime for stablecoin issuers as early as this year.
Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.