As reported by the WSJ, Bybit, one of the biggest cryptocurrency derivatives exchanges with headquarters in Dubai, is trying to establish its core Asian business in Hong Kong and has plans to establish a section of the research, development, and marketing team there.
In line with the tentative regulations that take effect in June, the exchange, which was established in 2018, also plans to seek for a license in Hong Kong.
Bybit received a warning from the Japan Financial Services Agency on March 31 for providing cryptocurrency trading without registration based on the same administrative principles as with three other crypto exchanges outside of Japan, stated to previous information.
Right now, Hong Kong is regarded as a paradise for the growth of cryptocurrency businesses worldwide. There are aspirations for Hong Kong to dominate the global cryptocurrency market. The Securities and Futures Commission of Hong Kong put up a new licensing plan in February that put a strong emphasis on protecting investors, the report said. Furthermore emphasized at a news conference by a senior official was the regulator's desire to prevent a repetition of the issues that led to the demise of FTX and other fraudulent activities.
More than 20 cryptocurrency and blockchain businesses from Singapore, Canada, Europe, and China's mainland have informed the government that they plan to open offices in Hong Kong. Additionally, more than 80 businesses have indicated interest in bitcoin trading in the city, based on official statistics.
The prospect of a central banking crisis serves as additional evidence for this. In the recent weeks, US regulators have restricted access to cryptocurrency products and services, targeted banks with cryptocurrency-friendly banks, sued exchanges, including Binance Holdings Ltd., the owner of the largest cryptocurrency exchange, and filed civil lawsuits against celebrities who are alleged to have promoted digital assets.
As firms and investors look for a friendlier regulatory environment and a conduit to burgeoning Asia's crypto sector, the US crypto crackdown has unintentionally increased HK's crypto ambitions. As a result, HK could become a dominant force in the global blockchain and cryptocurrency ecosystem in the years to come, which would have an impact on the wider financial and technological landscape.
