• 23 July, 2024
News

East vs. West: United States Chokes Crypto While Hong Kong Banks on It

As the crypto industry continues to grapple with regulatory uncertainty, there is a growing divide between East and West in terms of their approach to crypto companies. In the US, regulators have implemented “Operation Choke-Point” which aims to limit access to financial services for industries deemed high-risk, including cryptocurrency

Meanwhile, Hong Kong regulators are taking a different approach, convening a meeting between crypto firms and bankers to facilitate direct dialogue and share practical experiences in opening and maintaining bank accounts.

Hong Kong has long been a hub for financial activity and is now looking to establish itself as a hub for virtual assets. The round-table discussion, jointly held by the Hong Kong Monetary Authority and the Securities and Futures Commission, will take place on April 28 and aims to ease financing for the crypto sector.

This comes as the failure of the US Congress to enact policy is pushing the industry to other countries. According to Coin Bureau, Europe is ahead of the US in terms of its regulatory framework, while Australia, the UK, and Switzerland are also making strides in the industry.

Many in the crypto industry are already moving outside of the US due to regulatory uncertainty. Coinbase, the largest US-based crypto exchange, is considering launching an overseas trading desk, while Ripple CEO Brad Garlinghouse has said the industry has already started moving out of the country.

In contrast, Hong Kong remains committed to becoming a digital asset hub, with the backing of China. The upcoming meeting between regulators and crypto firms is just one example of the country’s efforts to establish itself as a leader in the industry.

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