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China's State-Owned Greenland Flocks to Hong Kong for Crypto and NFT Trading

Key Takeaways
  • Hong Kong increases crypto regulations as state-owned Greenland applies for a trading license.
  • Greenland aims to expand its digital financial business in Hong Kong, viewing it as a gateway to the global market.
  • While China cracks down on the crypto market, Hong Kong embraces cryptocurrencies and aims to become a fintech and web3 hub in Asia.
18-May-2023 By: Aditi Tiwari
China's State-Owned

Greenland, a Chinese state-owned real estate developer, is planning to apply for a virtual assets trading license in Hong Kong. 

This move comes as Hong Kong is increasing its regulations in the cryptocurrency space. The license application will be made by Greenland's fintech unit, in which the Shanghai municipal government holds a significant stake.

If approved, Greenland would become the first state-owned entity to obtain a digital assets license in Hong Kong. Chinese banks have already started providing services to crypto companies in the region. Greenland Financial Technology Group CEO James Geng Jing expressed their intention to expand their digital financial business in Hong Kong, considering it as a gateway to the global market. He sees the timing as favorable for Greenland to enter the virtual asset trading business in Hong Kong due to the city's introduction of a new regulatory framework.

Hong Kong has been making significant strides in the crypto space, focusing on both offerings and regulations. New rules have already been implemented, and more are expected to follow in the near future. On the other hand, mainland China continues its crackdown on the crypto market, particularly targeting the NFT market. Authorities are taking action against practices like airdrops, rewards, blind boxes, and limited sales, which they view as potentially leading to pyramid schemes and inflated NFT prices.

Hong Kong Embraces Crypto: Fostering Growth and Becoming a Fintech Hub

In contrast to mainland China's approach, Hong Kong is adopting a more favorable regulatory stance. The region is set to implement a licensing process starting from June 1, covering various aspects including stablecoins, which have been a concern for regulators. Hong Kong authorities have also emphasized to banks that there is no ban on serving crypto firms. Hong Kong aims to rejuvenate its financial hub status by embracing cryptocurrencies and placing a particular focus on web3 technologies. The finance chief has even encouraged investments in web3, considering it the best time to do so.

Overall, Greenland's application for a virtual assets trading license in Hong Kong demonstrates the growing interest and activity in the cryptocurrency space within the region. While mainland China continues its crackdown, Hong Kong is working towards establishing itself as a fintech and web3 hub in Asia, implementing regulations and fostering an environment conducive to the growth of the crypto industry.

Also read- Kraken, UK Criticizes Lawmaker's Crypto-Gambling Label

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