Reasons why Hong Kong is a great place for Blockchain
Updated: Feb 20, 2019
China's world window
The rising popularity of cryptocurrencies is undeniable on the global scale, but what also is undeniable is the fact that the adoption rate has not been en masse over the past few years.
This is especially the case for many large-scale institutions, hedge funds and many top-tier investors throughout Asia. This is largely due to several factors in trading platforms, including the lack of consistency, limited usability, security concerns, high fees, and sub-par consumer experience.
In Hong Kong, in particular, complaints about misappropriated assets and market manipulation led to the technical breakdown of several exchanges, which led regulators from the Securities and Futures Commission to step in and police the market, curbing potential fraud often associated with virtual currencies.
This puts market professionals, such as accountants and lawyers, in the position to ensure effective gatekeeping to prevent fraud and dubious fundraising activities, ensuring compliance with the law.
Blockchain as a High Priority
It is through the implementation of such regulatory actions that Hong Kong is seeking to gain the reputation to become an important international blockchain hub, and according to the fintech lead at InvestHK, “Blockchain is a very high priority for us. There is hype, and there is the fast grab of money with ICOs in some cases. But what we are looking at building here in Hong Kong is an infrastructure for new businesses and existing businesses, to make sure the technology and innovations remain a key enabler for financial sector growth.”