Zodia, a cryptocurrency custody firm owned by Standard Chartered, has entered the Hong Kong market with an array of services aiming to meet the needs of the city’s growing institutional investment community. Zodia is an Australian company that was created in 2020 and has since expanded to Japan as well as Singapore.
According to CNBC Julian Sawyer, the CEO of Zodia, explained that Hong Kong’s crypto market differentiates itself by being predominantly driven by institutional interest, rather than retail investors.
This focus aligns well with Zodia’s mission to cater to institutional clientele, making it the ideal destination for the firm’s latest expansion.
It is noteworthy that Hong Kong is increasingly accepting of crypto assets, particularly in light of the more general anti-crypto position that has been adopted in the mainland of China.
Earlier this year, the Hong Kong Securities and Futures Commission (SFC) initiated a preventative measure by releasing a regulatory framework for digital assets.
This was an example of proactive regulation. Using this framework, cryptocurrency enterprises can submit applications for official registration and operate inside an environment that is regulated.
OSL Digital and Hash Blockchain are the only two companies for which the SFC has issued licences at this time, which is a testament to the strict review procedure that the regulatory body employs.
Zodia is now said to be investigating the prospect of becoming a regulated organization in the financial district by actively participating in conversations with the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA).
This expansion, as well as potential compliance with legal requirements, is in line with the larger trend of a cryptocurrency awakening across the Asian area.
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