Open-Door Crypto Initiatives in Hong Kong Aid Bitcoin’s 8-Month High

HongKong's Crypto Initiatives

Today, positive news that Hong Kong will welcome digital assets and investors has fueled a surge in the cryptocurrency and bitcoin markets.

Hong Kong has ambitious plans to establish itself as a crypto hub in Asia. It will officially make crypto trading, buying, and selling for all of its citizens legal in June. That also includes institutions in the mainland of China.

Markets have surged by 9% on the day in response to this positive news, despite the U.S. regulators’ war on cryptocurrency.

Even though cryptocurrency is still prohibited for individuals, fully open Hong Kong makes it simple for Chinese money to return to digital assets.

The announcement made in January by Hong Kong’s Financial Secretary, Paul Chan, is the source of the information. He stated that the city intends to establish a robust regulatory framework and become a crypto hub.

Hong Kong Crypto Hub

Crypto YouTuber Warbler Davis brought up that it was very bullish for Bitcoin. Besides, a few trade exchange reserves (ETFs) have been applied for in Hong Kong.

On Feb. 13, BeInCrypto revealed that Singapore’s biggest bank, DBS, plans to apply for a computerized resource permit. This will permit the bank to offer the crypto exchange to Hong Kong clients.

On Feb. 16, Coinbase President Brian Armstrong remarked on the turn of events:

“America risks losing its status as a financial hub long term, with no clear regs on crypto, and a hostile environment from regulators.”

He went on to say that anyone can participate in crypto and that the controls that the United States once held are now being transferred to countries like Hong Kong.

The sentiment was also echoed by Justin Sun, founder of TRON (TRX). He has stated on numerous occasions that money from China and Asia will drive the subsequent bull market.

An Asian stablecoin has also been predicted by industry analysts to emerge during the subsequent market cycle. China and its neighbors have worked hard to get away from the dominance of the US dollar.

BeInCrypto reported in October that researchers from the Chinese government had proposed a digital currency that would be based on a basket of Asian currencies.

BTC Price Boosts

This rare instance of FOMO has boosted Bitcoin prices. The asset was at $24,681 at the time of writing, up 11.4% for the day. This is its highest price in about eight months, around the middle of June 2022.

However, prior to reaching previous highs, BTC still has a long way to go. It is currently 64.3% lower than its all-time high of $69,000 in November 2021.