In a recent report by South China Morning Post, it has come to light that Greenland Holdings, a Chinese state-owned real estate company, is keen on joining Hong Kong’s digital asset hub. The firm has displayed interest in creating a new unit to acquire virtual asset trading licenses in Hong Kong. This aligns with the region’s efforts to be a prominent digital assets trading center, and it seems that these endeavors are gaining some traction. Greenland Holdings will diversify its business with a significant move into the Hong Kong market.
Greenland’s fintech unit already possesses a digital banking license in Singapore and aims to take a similar step in Hong Kong. James Gend Jing, of Greenland Financial Technology Group, stated in an interview that the new unit would require a license under the Securities and Futures Commission (SFC) rules, which will come into effect on June 1, in order for the company to operate efficiently in the region.
In the same interview, Geng highlighted the importance of sound regulation and investor protection for Hong Kong’s development as a virtual asset hub. He also revealed that the new Greenland unit would trade various digital assets, including cryptocurrencies, non-fungible tokens, and carbon credits. So far, Greenland Holdings is the first state-owned enterprise to publicly express interest in joining the digital assets trading community in Hong Kong. According to Geng, applying for a virtual asset operator license will serve to diversify the company’s business and expand its international footprint.
The reason for Greenland’s interest in Hong Kong appears to be the region’s unique position as a global city that also enjoys close ties with China. In Geng’s words, “We want to expand our digital financial business in Hong Kong as our gateway to the world.” Additionally, the upcoming regulatory regime for digital asset trading platforms in Hong Kong provides an excellent opportunity for Greenland to launch and operate its new unit.
In contrast to the strict regulations imposed on digital assets in other jurisdictions, Hong Kong seems to be moving forward with its virtual assets trading plans. Neil Tan, chairman of the FinTech Association of Hong Kong (FTAHK), stated at the Hong Kong WOW Summit in March that a licensing regime for crypto exchanges would take effect on June 1. This welcoming regulatory environment has attracted various firms from within and outside the region, vying for a chance to partake in the flourishing
Source: Cryptonews
