Cryptocurrencies could “pivot from the West to Asia”

Hong Kong and Singapore could become the global cryptocurrency hubs, as there is the potential for growth in Asian markets, several experts say on the matter.

The trend comes amid a crackdown on cryptocurrency lenders in the US.

Following market turmoil and the bankruptcy of several cryptocurrency companies, including cryptocurrency platform FTX, the US Securities and Exchange Commission (SEC) imposed fines and other penalties.

At the same time, banks restricted the conditions under which cryptocurrency companies could obtain loans.

Moreover, despite being a global cryptocurrency hub, Washington has yet to develop a comprehensive regulatory framework.

Meanwhile, Hong Kong approved cryptocurrency retail trading rules on June 1.

It has already allowed cryptocurrency platforms to apply for a license to sell digital assets to retail investors.

As for Singapore, it was one of the first countries in the world to adopt a regulatory framework in this sector.

“Hong Kong is naturally positioned as a financial center to become a cryptocurrency hub.”

“Its proximity to China means that companies will not want to miss this opportunity,” says Chen Zhuling, co-founder and CEO of RockX, which provides blockchain infrastructure for enterprises, in comments to SCMP.

The expert notes that companies operating in the cryptocurrency market have already moved their activities to Singapore in the past two years, and “Hong Kong is likely to see similar activity.”

Gracy Chen, managing director of cryptocurrency exchange Bitget, which launched a US$100 million investment fund in Hong Kong in April, is also optimistic about the prospects for Asian hubs.

“The idea is that we understand the growth potential of Asian markets.”

“One of the causes is how Hong Kong and Singapore are establishing themselves as hubs for cryptocurrencies. We are now seeing a kind of pivot from the West to Asia,” she explains.

She adds that while Hong Kong “has always been a financial center, but not a technology hub,” its proximity to the Chinese city of Shenzhen, known as China’s Silicon Valley, outweighs the disadvantage.

“If there is not a U-turn in US policy, and there is a mass exodus of blockchain companies from the US in the next few years (…), they will have to take their innovation and taxes elsewhere,” argues Lachlan Feeney, founder, and CEO of Labrys, Australia’s largest blockchain consultancy.

With information from Sputnik

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