Paris-based institutional crypto market data supplier Kaiko’s CEO, Ambre Soubiran, has suggested that Hong Kong may become the new “center of gravity” for the cryptocurrency industry due to the U.S. government’s chilly stance on cryptocurrency legislation. Despite being a leader in the crypto industry for some time, the United States’ position may soon be at risk as businesses, developers, and investors look for more welcoming environments.
United States Continues To Face Legislative Ambiguity In Crypto Industry
Experts predict that nearly one million I.T. positions could be lost to foreign countries if the U.S. fails to embrace the cryptocurrency industry. This is because other countries like the EU, Hong Kong, the U.K., Australia, UAE, Singapore, and Japan actively create favorable conditions for bitcoin and other cryptocurrencies to thrive. In contrast, the United States continues to face legislative ambiguity in this area.
- Crypto Council Adviser Believes Fair US Crypto Laws Are ‘Possible’ But Will Require Significant Effort
United States’ Recent Crackdown on Crypto Industry Prompted by FTX Crash
Soubiran explained that her company, Kaiko, wants to be where their clients are, which means being in a more welcoming jurisdiction to cryptocurrency. The United States’ recent crackdown on crypto has been prompted by the FTX crash in November, which has made the government increasingly hostile towards the industry. Elizabeth Warren, a senator in the U.S., has even stated that she is creating an “anti-crypto army.”
Trillion-Dollar Business has no Redeeming Features or Merits, says Oval Office
“This trillion-dollar business we’ve been attempting to demolish, which rebounded 30% as our financial system needed a $2 trillion safeguard and in 10 years gained 10,000s of American employment… possesses no redeeming features or merits.” -The Oval Office, Ryan Selkis (@twobitidiot) on Twitter March 21, 2023
Plans for Hong Kong to Become Center for Innovative Legislation Announced in January
Plans for Hong Kong to become a center for innovative legislation to support excellent crypto and fintech companies were first announced in January.
Hong Kong’s SFA suggested a crypto licensure system on February 20 to protect consumers without impeding innovation. This legislation is still being worked out. Christian Hu, Hong Kong’s Secretary for FSTB, said in a speech on March 20 that more than eighty businesses involved with virtual assets had expressed interest in locating there.
Hong Kong’s openness to Innovation and Business-Friendly Regulations make it a Natural Choice for Expansion
Countries with a more accommodating regulatory environment will emerge as the new leaders as the crypto industry evolves. The move towards Hong Kong may be driven by its openness to innovation and business-friendly regulations. The city’s existing position as a global financial hub could also make it a natural choice for businesses looking to expand their operations.
It remains to be seen how the cryptocurrency landscape will evolve in the coming years. However, countries with a welcoming attitude towards this emerging industry are well-positioned to attract investment and talent, potentially leaving others behind.