Hong Kong is laying out the metaphorical red carpet for crypto exchanges, as it aims to attract as many crypto firms as possible. According to a June 15th report from The Financial Times, the Hong Kong Monetary Authority is pressuring major financial institutions to accept crypto clients. At the same time, Johnny Ng Kit-Chong, Member of the Legislative Council of Hong Kong, has issued a public invitation for international virtual asset exchanges, including Coinbase, to come to Hong Kong and apply for a compliant exchange license.
Meanwhile, the Bank of China’s investment banking subsidiary, BOCI, has tokenized 200 million Chinese Yuan ($28 million) in digitally structured notes on the Ethereum blockchain. The move reportedly represents the first act of a Chinese financial institution tokenizing a security in Hong Kong. Notably, the tokenized notes are governed by both Hong Kong and Swiss law due to their origination by the Swiss investment bank UBS.
On the other hand, Terraform Labs CEO Do Kwon and CFO Han Chang Joon are facing a whole host of legal troubles. They have been ordered back to jail by the High Court of Montenegro in Podgorica, pending extradition proceedings to South Korea for charges relating to their role in the $40 billion collapse of the Terra Luna ecosystem.
Furthermore, South Korean yield platform Haru Invest has filed a criminal complaint against its consignment operator B&S Holdings. Haru paused deposits and withdrawals, citing false information provided by the consignment operator. This move has led to a temporary suspension of customer withdrawals for South Korean Bitcoin lending firm Delio – one of the largest entities of its kind in South Korea, holding around $1 billion in Bitcoin, $200 million in Ether, and $8.1 billion in altcoins.
While Hong Kong’s proactive approach to crypto adoption might spark some enthusiasm, it also attracts attention to the ongoing legal issues faced by industry players such as Terraform Labs and Haru Invest. The legal landscape surrounding cryptocurrency remains a contentious arena, with varying degrees of regulation and enforcement present across different jurisdictions.
In conclusion, Hong Kong’s welcoming stance towards international crypto exchanges could potentially provide a boost to the region’s Web3 industry. However, this approach is not without its challenges, as exemplified by the ongoing legal entanglements faced by several crypto industry players. It remains to be seen how these situations unfold – for now, the crypto community stands divided over whether regulatory hurdles present a necessary step towards securing the industry’s future or serve as obstacles stifling its growth.
Source: Cointelegraph
