Hong Kong legislator invites Coinbase to the region despite SEC scrutiny

Touting his progressive stance on cryptocurrencies, a Hong Kong lawmaker has invited Coinbase and others crypto exchanges establish operations in the region.

Legislative Council Member Johnny Ng took to Twitter to express support and assistance to "all global virtual asset trading operators" like Coinbase. He also hinted at potential stock listing opportunities. This comes after the recent United States Securities and Exchange Commission lawsuits against major industry players like Binance and Coinbase.

Contrary to the cautious stance of several Western countries towards CRYPTOCURRENCIES, Hong Kong has taken a proactive approach. In January 2023, Hong Kong Financial Secretary Paul Chan declared the dedication of the government to establish a strong ecosystem for crypto and fintech. Subsequently, Hong Kong has been diligently formulating regulations and implementing compliance measures to nurture expansion of the cryptocurrency industry.

The Hong Kong Monetary Authority (HKMA) recently revealed its intention to lay the groundwork for the introduction of a retail trade central bank digital currency (CBDC). This initiative, announced on June 9, seeks to investigate the advantages of CBDCs as a means of payment for everyday transactions and to facilitate customer access to cryptocurrency exchanges.

The invitation extended by Ng illustrates Hong Kong's dedication to becoming a digital hub for the cryptocurrency industry. OKX and Huobi were among the first cryptocurrency exchanges to apply for virtual asset service provider licenses in the region.

The favorable approach towards cryptocurrencies in Hong Kong has also attracted interest from prominent international technology companies. In January, South Korea Tech giant Samsung announced the introduction of a Bitcoin (BTC) futures exchange-traded fund active on the Hong Kong Stock Exchange.

Related: Hong Kong Regulatory Leader Sets It Up as a Major Crypto Hub

In addition, in mid-February, reports surfaced that Chinese government officials were grant of strategic approval to the pro-crypto initiatives undertaken by Hong Kong. This recognition from the Chinese authorities further highlights the importance of Hong Kong's efforts in the crypto space and its potential impact on the broader digital currency landscape.

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