Greenland, a Chinese state-owned real estate developer, will apply for a virtual assets trading license in Hong Kong. The application comes as Hong Kong is ramping up regulations.
Chinese state-owned Greenland, a real estate developer, will apply for a virtual assets trading license in Hong Kong, according to reports. Specifically, the fintech unit of Greenland will apply for the license. The Shanghai municipal government owns 46.4% of the company.
This would mark the first state-owned entity to apply for a digital assets license in Hong Kong. Chinese banks have already warmed up to offering services to crypto companies in the region. Speaking about the development, Greenland Financial Technology Group CEO James Geng Jing said,
“We want to expand our digital financial business in Hong Kong as our gateway to the world. As Hong Kong is launching a new regulatory regime for virtual asset trading platforms, it is the perfect timing for Greenland to enter into this business in Hong Kong.”
Hong Kong has been ramping up its activity, both in terms of actual offerings and regulation, in the crypto space in recent months. New rules have been implemented, and more will likely arrive soon.
Chinese Authorities Crackdown on NFT Market
Meanwhile, mainland China has been continuing its crackdown on the crypto market. Most recently, prosecutors are bearing down on “pseudo-innovation” in the NFT market.
These prosecutors are targeting such mechanics as airdrops, rewards, blind boxes, and limited sales. They believe that this can lead to pyramid schemes that inflate the prices of NFTs. It is yet another action taken by Chinese authorities, who are not keen on letting the crypto market flourish as is.
Hong Kong Making Progress With Crypto Regulation
Hong Kong is taking a kinder approach to regulation, with a licensing process due to come into effect on June 1. Among the many items on the agenda are stablecoins, which is a pain point for many regulators.
Authorities in the region have also gone to the extent of stressing to banks that there is no ban on serving crypto firms. Hong Kong aims to revitalize its financial hub status with crypto and particularly emphasizes web3. The finance chief has even said that now is the best time to invest in web3.
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