Top Hong Kong Leader Welcomes Coinbase And Crypto Companies

In a surprising move amid increased regulatory scrutiny on the crypto market ecosystem in the United States, Hong Kong Legislative Council member Johnny Ng has extended an invitation to global virtual asset trading operators, including Coinbase, to establish their presence in the region. This development follows the U.S. Securities and Exchange Commission (SEC) targeting Coinbase, one of the leading U.S.-based crypto exchanges, with charges of violating securities laws in the country. However, arguments have surfaced suggesting that the SEC was already aware of the operations when it approved Coinbase’s initial public offering (IPO) back in 2019.

It is worth noting that during the IPO approval process, the U.S. SEC explicitly stated that such approval does not prevent the commission from taking action against businesses for potential violations in their operations. These recent events have created shockwaves within the crypto trading community, as both Binance and Coinbase, two of the world’s top crypto exchanges, have faced back-to-back lawsuits.

Contrary to the regulatory environment in the United States, Hong Kong’s political leader, Johnny Ng, took to public forums on Saturday to extend an open invitation to Coinbase and other crypto trading operators, urging them to apply for regulatory licenses in the region.

I hereby offer an invitation to welcome all global virtual asset trading operators, including Coinbase, to come to Hong Kong for the application of official trading platforms and further development plans. Please feel free to approach me, and I am happy to provide any assistance.

In a recent development, Hong Kong made headlines by permitting retail investors to trade Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies. Consequently, there has been a notable increase in demand for certain Chinese crypto coins, although not to the extent initially anticipated.

This move by Johnny Ng and the Hong Kong government highlights their proactive stance towards embracing the crypto industry. By encouraging reputable global players like Coinbase to establish operations in Hong Kong and apply for regulatory licenses, the region aims to foster a favorable environment for crypto businesses while ensuring regulatory oversight. It remains to be seen how this invitation will be received by Coinbase and other crypto companies, and whether it will lead to an influx of major players into Hong Kong’s crypto market.