Bitcoin and crypto markets are surging today, bolstered by positive news that Hong Kong will be opening the doors to welcome digital assets and investors.
Hong Kong has ambitious plans to become an Asian crypto hub. In June, it will officially make crypto buying, selling, and trading fully legal for all its citizens. That also includes mainland Chinese institutions.
Amid a war on crypto waged by U.S. regulators, markets have reacted to this positive news by surging 9% on the day.
A fully open Hong Kong means that money from China can flow easily back into digital assets even though the ban on crypto for individuals remains.
The news stems from a January announcement by Paul Chan, the Financial Secretary of Hong Kong. He said that the city plans to become a crypto hub with a robust regulatory framework.
Hong Kong Crypto Hub
Crypto YouTuber Lark Davis pointed out that it was extremely bullish for Bitcoin. Furthermore, several exchange-traded funds (ETFs) have been applied for in Hong Kong.
On Feb. 13, BeInCrypto reported that Singapore’s largest bank, DBS, plans to apply for a digital asset license. This will allow the bank to offer crypto trading to Hong Kong customers.
On Feb. 16, Coinbase CEO Brian Armstrong commented on the development:
“America risks losing its status as a financial hub long term, with no clear regs on crypto, and a hostile environment from regulators.”
He added that crypto is open to everyone, and controls that the U.S. once held are being diverted to outside countries like Hong Kong.
TRON (TRX) founder Justin Sun also echoed the sentiment. He has repeatedly stated that the next bull market will be driven by money from China and Asia.
Industry analysts have also predicted that an Asian stablecoin will also emerge in the next market cycle. China and its neighbors have been working hard to distance themselves from U.S. dollar hegemony.
In October, BeInCrypto reported that Chinese government researchers proposed a digital currency based on a basket of Asian currencies.
Bitcoin (BTC) Price Pumps
Bitcoin prices have been buoyed by this rare slice of FOMO. At the time of press, the asset was up 11.4% on the day to reach $24,681. This is its highest price since mid-June 2022, around eight months ago.
However, BTC still has a long way to go before it sees previous highs. It currently sits 64.3% below its November 2021 peak of $69,000.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.