Hong Kong approves Coinbase despite US crackdown

Hong Kong is making a bold statement to all cryptocurrency firms by inviting them to establish their businesses in the Asian nation. In a tweet made by politician Johnny Ng Kit-chong, he pointed out that Coinbase and other “global virtual asset trading operators” are welcome in Hong Kong.

I hereby offer an invitation to welcome all global virtual asset trading operators including @coinbase to come to HK for application of official trading platforms and further development plans. Please feel free to approach me and I am happy to provide any assistance. pic.twitter.com/bcIi1IjMlc

— Johnny Ng 吴杰庄 (@Johnny_nkc) June 10, 2023

Johnny is a Hong Kong engineer and politician who has been a member of the Legislative Council of Hong Kong since 2022. He holds a doctorate degree and is opening up a point of contact between Hong Kong and any crypto firm interested in doing business there.

This move comes just days after the US Securities and Exchange Commission made moves against the crypto market by suing Binance and filing another suit opposing Coinbase’s operations within less than 24 hours.

Furthermore, the US regulatory body has classified certain cryptocurrencies as securities and subject to securities laws. Cryptocurrencies such as ADA, SOL, and MATIC are specifically mentioned in this classification.

Hong Kong and the world of Web3 

Hong Kong has been a strong supporter of the crypto industry. In February of this year, the government launched its first tokenized green bonds on a private blockchain worth 800 million Hong Kong dollars. 

Additionally, the Securities and Futures Commission actively sought partnerships with industry participants to create a sound regulatory framework for cryptocurrencies.

In April this year, the Hong Kong Monetary Authority ordered banks to offer services for crypto companies. Fast forward to May 2023, Hong Kong launched a pilot for eHKD (a native CBDC) and a metaverse with a strong emphasis on security to counter cybercrimes.

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