US-based stablecoin issuer Circle Internet Financial Ltd. is closely watching the current regulatory developments in Hong Kong as the region’s new crypto rules went into effect earlier this month, said Circle CEO Jeremy Allaire.
While the US intensifies the regulatory crackdown, the Asian market remains a huge area of focus for crypto firms. Speaking at the World Economic Forum in Tianjin, China, on Tuesday, June 27, Jeremy Allaire told Bloomberg:
“Hong Kong clearly is looking to establish itself as a very significant center for digital assets markets and for stablecoins and we are paying very close attention to that”.
In its pursuit of expansion in the Asian markets, Circle recently secured a license as a major payments institution in Singapore. Thus, it will now be able to offer digital payment token services for domestic as well as cross-border money transfer services.
Starting June 1, Hong Kong implemented new rules for regulating cryptocurrencies. This comes at a time when digital asset companies worldwide are looking for secure and appropriate destinations for investors and users due to increased restrictions in the US. However, Hong Kong has not yet introduced regulations specifically for stablecoins.
Circle Supports Hong Kong’s Crypto Ambitions
Over the past year, Hong Kong has been making moves to establish itself as the crypto hub of Asia. Past reports suggest that Hong Kong has support from mainland China despite the ban in the region. This has also led many to believe that China might soon lift a ban on digital assets.
Yesterday, Hong Kong’s leading banking institution HSBC announced that it would allow customers to buy Bitcoin and Ethereum ETFs. This has been a major development after the introduction of new crypto rules in Hong Kong.
“What’s happening in Hong Kong may be a proxy for ultimately how do these markets grow in Greater China. We see enormous demand for digital dollars in emerging markets and Asia is really center of that,” Circle CEO Allaire said.
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