Hong Kong offers Coinbase a chance to expand into the region as US regulators crack down on the digital asset industry.
Johnny Ng, a member of the Hong Kong Legislative Council, has offered to help Coinbase and other digital asset companies move to Hong Kong.
“I hereby extend an invitation to welcome all global virtual asset trading operators, including Coinbase, to come to Hong Kong for the adoption of official trading platforms and further development plans. Do not hesitate to approach me and I will be happy to help you.”
The invitation via Twitter comes days after the US Securities and Exchange Commission (SEC) filed lawsuits against major crypto exchanges Binance and Coinbase. The SEC is accusing Coinbase of securities violations and failure to register as a broker-dealer, and Binance of several violations.
While regulators in the US are on the offensive, Hong Kong has taken steps to be more accommodating to the crypto industry.
Hong Kong recently launched a process for trading platforms and exchanges to obtain licenses through the Securities and Futures Commission (SFC), ahead of plans to allow retailing of digital assets later this year, according to a new Nikkei report.
Since 2018, Hong Kong has restricted cryptocurrencies to institutional investors and other professionals.
According to Julia Leung, CEO of the Securities and Futures Commission in Hong Kong,
“Hong Kong’s comprehensive regulatory framework for virtual assets follows the principle of ‘same company, same risks, same rules’ and aims to provide robust investor protection and manage key risks.” This enables the industry to develop sustainably and to support innovation.”
More than 80 companies have already expressed interest in obtaining a license, according to the report.
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