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Hong Kong distinguishes itself in the field of cryptocurrency legislation by adopting a rapid and consistently favorable approach, outpacing other governments. While Europe began exploring markets in crypto assets regulation in 2020, and both Singapore and Japan initiated their efforts years ago, Hong Kong has showcased a proactive and hospitable stance, surpassing many in the speed of regulatory progress.
Do people use Bitcoin in Hong Kong?
Acquiring Bitcoin and other cryptocurrencies in Hong Kong is a straightforward procedure, typically requiring less than 10 minutes for complete setup. The initial step involves registering with a platform, app, or exchange and undergoing a Know Your Customer (KYC) verification process. Besides Bitcoin adoption, the average revenue per user in the cryptocurrency market amounted to approximately US$120 this year.
What is the size of Hong Kong's crypto market?
Despite its smaller population and the global downturn in crypto markets, Hong Kong's vibrant over-the-counter crypto market recorded a trading volume of $64 billion in the past year. This figure is not significantly distant from China's $86.4 billion, highlighting the robust activity in Hong Kong's crypto scene.
Hong Kong's user adoption will grow from approximately 16,1% this year to 21.5% by 2028. Its revenue in the cryptocurrency market is projected to reach US$145 million this year.
Are Hong Kong's exchanges licensed?
Hong Kong's Securities and Futures Commission (SFC) has approved only two cryptocurrency exchanges: OSL and Hashkey. According to one source, several other online brokers have contemplated applying for licenses since late last year, but a majority are holding off on their applications, awaiting further clarity on Hong Kong's regulations before proceeding.
Hong Kong and Spot Crypto ETFs.
Hong Kong's regulatory authorities are presently considering the prospect of cryptocurrency ETFs as a component of their strategic endeavors to establish Hong Kong as the foremost digital asset hub in the Asia-Pacific region. Blackrock's ETF proposal has highlighted a global interest in the rollout of Spot Bitcoin ETFs and has prompted the SFC to welcome proposals for Spot Crypto ETFs. The authorities are open to integrating citizens into a legislative model that allows them to participate in these ETFs.
