Author: Bitkoala Finance
Recently, there have been rumors in the crypto community that "Hong Kong is no longer popular, and exchanges are leaving Hong Kong in batches", claiming that mainstream exchanges will leave Hong Kong in batches. Bitkoala suggested that the author first follow the official account of the Ministry of National Security, and then read the article "National Security Agencies Resolutely Build a Strong Economic Security Barrier".
Next, let’s take a look at why the Hong Kong virtual asset market is so attractive!
Don't compare Hong Kong with the United States
Hong Kong is just a "small city" of 1,113 square kilometers, while the United States is "Great America" of 9.15 million square kilometers. This comparison itself is problematic, isn't it? In fact, our "national team" and "aunties" have not yet entered the field, and Hong Kong is now playing more of a "test field" role.
On May 29, Chen Chun, an academician of the Chinese Academy of Engineering and a professor at the School of Computer Science and Technology of Zhejiang University, was invited to the Legislative Council of Hong Kong to exchange views with members of the Legislative Council on topics such as digital economy and Web3.0 development. Chen Chun described Hong Kong as a "sandbox" for the development of Web3.0, promoting more innovative application scenarios under risk management, and believed that it would play a big role in the development of China's digital economy.
(Bitkoala Note: For those who don’t know Professor Chen Chun, you can take a look at what he did on October 24, 2019.)
At the exchange meeting, Chen Chun analyzed the characteristics of Web3.0 from a technical perspective and how to serve the real economy. He said that Web3.0 is a token economy, based on the immutability of blockchain, which can give non-platform participants more say, such as preventing multiple uses of data, thereby making the data itself more valuable, building a fair, equitable and credible network information space, and conducting commercial activities on this basis.
Hong Kong is actively promoting the development of the digital economy. In Chen Chun's view, based on Hong Kong's technical facilities and unique advantages, the development of Web3.0 should focus on serving the real economy and promoting application innovation and exploration, such as digitizing traditional finance and physical assets, developing digital asset businesses with real asset tokenization as the core, improving asset liquidity, reducing transaction costs, and improving transparency, so that Hong Kong can occupy the position of a digital financial center in the new round of international competition.
During the exchange session, Legislative Council members Elizabeth Quat, Wong Ying-ho, Ng Kit-chuang, and Yan Gang paid attention to how various industries in Hong Kong can deepen and expand the digital economy and what other application scenarios there are for Web3.0.
"Web3.0 is not a simple virtual currency, but a study on how to promote the real economy. Hong Kong has a good advantage with perfect laws and regulations." Chen Chun described that the development of virtual currencies on the market is "running wildly", but Hong Kong is a "big sandbox" that needs to consider risks and have clear boundaries for management, so that the reasons can be found when negative events occur. Hong Kong needs to form a unique ecology through financial attributes and traditional service industries, which I believe will play a big role in the development of China's digital economy.
Are exchanges really retreating?
I believe that attentive investors have discovered that most exchange applications have been "withdrawn", which means that their license applications are incomplete and/or have important issues that have not been resolved. The relevant decisions made by the regulatory agencies are obviously motivated by investors. protection purposes. Hong Kong’s virtual asset market has significant potential and attraction on a global scale. The following is a detailed analysis of several key points why Hong Kong’s virtual asset market deserves long-term optimism:
1. Policy support and regulatory environment
Policy openness and support
The Hong Kong government has shown a positive and supportive attitude towards the virtual asset market in recent years. For example, the Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) have introduced a number of policies and guidelines to promote the development of the virtual asset industry while protecting the interests of investors.
Improvement of regulatory framework
Hong Kong's regulation in the field of virtual assets has been gradually improved, especially the regulation of virtual asset trading platforms and related financial services. The SFC has issued the "Guidelines on the Supervision of Virtual Asset Trading Platforms", which sets a clear regulatory framework for the industry, which will help build market transparency and trust.
2. Financial infrastructure and technological advantages
Advanced financial infrastructure
As an international financial center, Hong Kong has advanced financial infrastructure and technical support, which provides a solid foundation for the development of the virtual asset market. The widespread application of financial technology (FinTech) in Hong Kong has made the transaction and management of virtual assets more efficient and secure.
Technological innovation and talent reserve
Hong Kong has abundant technical talents and innovation capabilities. Many internationally renowned universities and research institutions have trained a large number of high-quality professionals for the virtual asset industry, which provides a guarantee for the industry's continued innovation and development.
3. International advantages and geographical location
International financial center status
As one of the world's important financial centers, Hong Kong has extensive international connections and rich experience in financial services. This gives Hong Kong a unique advantage in attracting international virtual asset investments and enterprises. Hong Kong's free economic system and low-tax environment have also attracted a large number of international companies and investors.
Location Advantage
As a bridge between Asia and the rest of the world, Hong Kong's geographical location gives it a strategic advantage in the virtual asset market. In particular, its close ties with mainland China give Hong Kong a unique advantage in developing the huge Chinese market.
4. Market demand and development prospects
High-growth market demand
As global recognition of digitalization and virtual assets continues to increase, the market demand for virtual assets is showing a rapid growth trend. Hong Kong investors and companies have shown a strong interest in virtual assets, which provides a solid demand foundation for the long-term development of the market.
Potential business opportunities
Virtual assets have broad application prospects in financial services, trade, payment and technological innovation. As an innovation and business center, Hong Kong can use virtual asset technology to develop new business models and services and promote the diversified development of the economy.
5. Risks and Challenges
Although Hong Kong's virtual asset market has broad prospects, it also faces some challenges. For example, international regulatory coordination issues, market volatility and technical risks. Therefore, market participants need to remain cautious, and the government and regulators also need to continue to improve the regulatory framework to ensure market stability and security.
in conclusion
Taken together, Hong Kong's virtual asset market has significant advantages in policy support, financial infrastructure, international advantages and market demand, which gives the market potential for long-term development. Although there are some risks and challenges, as long as they can be effectively dealt with, these factors will not hinder the long-term optimism and continued growth of the Hong Kong virtual asset market.
