Independent Reserve, an Australian-based crypto exchange, has been thinking about exploring opportunities in Hong Kong. The area has become the center of attention due to its acceptable and friendly licensing regime, which has attracted crypto organizations.
Due to its liberal licensing regime, Hong Kong could be an ideal destination for a visual assets hub. Although Hong Kong has welcomed the industry, there may be other factors that businesses should consider.
Last month, the Hong Kong Securities and Futures Commission (SFC) issued a proposal covering a licensing regime for crypto exchanges. The proposed licensing regime should come into force in June.
These changes to the licensing regime need to be aligned in order for Hong Kong to become the next digital asset hub.
Independent Reserve co-founder and CEO Adrian Przelozny confirmed that the crypto exchange is looking to expand its base in Hong Kong,
Now, it looks very interesting. Recent announcements by regulators in Hong Kong make Hong Kong look like a friendly jurisdiction.
The elements included in the License Proposal
The proposed licensing regime will come into force in the next two months. Crypto companies must comply with these new measures, which focus on keeping their assets safe.
Licensing regimes include Anti-Money Laundering, Know Your Customer, Counter-financing for the prevention of terrorism, disclosure of conflicts of interest, and auditing.
If Independent Reserve can set up a base, it will join Huobi and OKX, two other crypto exchanges that have set up operations in Hong Kong.
Adrian Przelozny stated that the Independent Reserve team will meet with Hong Kong banks and regulators. Exchanges also look to assess compliance to determine if the location is a good fit for the company.
Przelony also commented on the political atmosphere of the region with China and stated that China is currently testing a more flexible crypto regime in Hong Kong,
If successful, China could do the same:
The Chinese government is using Hong Kong as a testnet to experiment with a looser cryptocurrency regime to see what impact it has on the business landscape there. If they see it as a positive thing, then there is a possibility that they will launch China and loosen the existing restrictions.
80 Crypto Companies Are Interested In Setting Up In Hong Kong
More than 80 cryptocurrency companies in mainland China and elsewhere have also expressed interest in establishing a presence in Hong Kong, as Christin Hui, Secretary of Financial Services and Treasury, said on March 20.
Independent Reserve operates as a licensed crypto asset service provider in Singapore. Cryptocurrency exchange recently launched Bitcoin.com.au after buying a domain name for $2 million (about $3 million in Australian dollars).
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