Hong Kong Sets Sails To Become Crypto Central

Hong Kong Sets Sails To Become Crypto Central

We've gone from a period of no news to now what appears to be the defining period for digital currencies and will usher in a new era of Decentralised Finance (De-Fi). and only yesterday we brought you news that Asia was returning to Crypto Currency in a big to regain lost ground and now it feels it is on for young and old.

After the Chinese ban on Bitcoin and crypto currencies as China moved to a digital Yuen, investors and companies flocked to Hong Kong which for a long time held cryptocurrency dominance. This was all until Singapore leapt into the scene shooting to the top spot and beginning to work with their banks and create non restrictive regulations that enabled the sector to continue to grow.

Hong Kong has decided that it wants to return to the fold and it's not for just the sake of it, there are some really big changes coming in Asia that has caught the eye of many Digital currency investors.

China Legalizes Digital Currency Trading

On the first of Juna China legalized the trading of digital currencies after years long battles against the rising decentralised currency, the nation has caved in.

After conducting community feedback which saw 152 respondents including leading industry advisors and consistence as well as investors. The Hong Kong Securities and Futures Commission (SFC) announced it would be licencing individuals to provide digital asset retail investment opportunities.

The SFC has established a USD101 Million dollar tokenized green bond which means it is the first nation on the planet to do so. But before you go rushing into see where the money is going to be spent. It will be provided to Goldman Sachs for it's GS DAP which is a tokenized trading platform.

The funds will be overseen by the Hong Kong Monetary Authority (HKMA) and will be utilised for clearing and settlement of trades effectively creating the first bank backed crypto exchange, although not decentralised.

But the decision by Hong Kong to take such a move will put it in a good position to take in a lot of that investment from China, how it will impact the overall market is yet to be seen but we can probably guess that GS DAP will be needing to buy a lot more Bitcoin to meet demand.

Where is America?

While Asia prepares to dominate this era of digital assets there was high hopes for the US to take the lead and a lot of people thought it would become the home of the free market digital asset growth. Unfortunately, a lot of failures in the market impacted it's ability to back digital assets. but we are seeing the US aggressively shut down centralised exchanges while granting mainstream exchanges the ability to trade digital assets.

While the US hasn't taken many large moves to dominate the space we can see US players moving into Asia with the latest launch of Circle the issuer of USD granted a license to operate in Singapore.

Just as the US Dollar plays a large role in the global mainstream world we can guess it will further play a part in the decentralised world also. The US Dollar is still one of the safest currencies on the planet with an entire global backed trust in it's ability to retain it's value.

Hong Kong Budget Boost for Web 3 Development

Hong Kong has further allocated US6.5 Million in it's 2023-2024 National Budget to develop the nations web 3 ecosystem which will also see Hong Kong attempt to integrate the Digital Yuan into the world of digital assets. So very soon we might be able to get our hands on our very own Chinese currency, although it did have tracking fears so who knows how successful that will be.

So it appears we now have a new web 3 and Digital Asset battle front and this time it isn't over mining and energy consumption but who will come out on top as economic leaders in enabling fintech and progressing crypto currencies.

While there is still a lot of work that needs to be done it appears that central banks are going all in on the decentralised world and soon, we may have an entirely new sector. What that means for Hive and Leo is yet to be known. But lets hope we all come out on top in this next gold rush!

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