Many places have had different reactions to the growth and rising use of cryptocurrencies. Some are going all in on the industry and its many opportunities by coming up with new ideas. But some people are going back on their steps in the crypto space by using stricter rules.
Recently, there have been some interesting changes in the retail digital asset landscape in some parts of Asia. For example, Hong Kong and Singapore seem to be going in different directions when it comes to how they feel about online shopping.
Singapore is slowly going back to how it used to feel about digital assets and their activities. But Hong Kong is getting ready for new steps that will make it stronger in the digital world.
A recent report says that Hong Kong wants to get into retail crypto trading. People have said that the area doesn’t care much about trading digital assets. But its recent move aims to fix the damage that China’s restrictions have done to its crypto industry.
Hong Kong To Establish Mandatory Licensing Program
Bloomberg said that the government of Hong Kong wants to start a program that requires people to get licenses. With this change, digital asset companies that have been whitelisted will be able to launch retail trading products in the region. Also, the area has set March 2023 as the start date for the plans.
If this plan works, it will be a great thing for Hong Kong. It will be a big step toward reaffirming that it is financially independent of the mainland. But Beijing may still have to agree to the plan for it to go ahead.
Hong Kong wants to build on its reputation as an international financial hub with its plan to grow through the retail trade. This is a standard that other governments in the area really want.
Hong Kong’s government officials are looking for well-known digital assets to help with the initiative. But they probably won’t use Bitcoin, since Chia will ban Bitcoin and other cryptocurrencies in 2021.
Singapore Pulls Back on Retail Participation in Cryptocurrencies
Singapore, for its part, is getting out of the retail business. The reasons come from the failure of Terra, a digital asset company based in Singapore, and its ecosystem, as well as other digital asset companies. Because of this, the Monetary Authority of Singapore (MAS) has made crypto rules more strict.
The head of the MAS, Ravi Menon, made some statements about how the rules for digital assets are different in Hong Kong. Menon said that their crypto regulations are not in competition with those of other places. Instead, they have fixed the problem by taking the steps needed to control risks that could hurt small investors.
Before, Singapore was in the middle of the year’s drop in digital assets. Singapore was the center of some of the biggest problems in the crypto space.
