Hong Kong’s cryptocurrency market is poised for growth, according to Binance founder Changpeng Zhao. In a recent interview with the South China Morning Post, Zhao emphasized the need for Hong Kong to expand the range of cryptocurrencies available on licensed exchanges in order to compete with global hubs like the US and UAE.
Currently, retail traders in Hong Kong are limited to trading four cryptocurrencies on licensed platforms: Bitcoin, Ether, Avalanche, and Chainlink. These restrictions were put in place by the Securities and Futures Commission in 2023 when retail trading was legalized. Tokens must meet specific criteria, including being included in at least two major investible indices.
Zhao believes that the four approved tokens are insufficient and points to Japan’s more flexible system, where exchanges have greater autonomy in deciding which assets to list. While Hong Kong has 11 licensed virtual asset trading platforms, Binance has not sought approval to operate in the region. Zhao, who stepped down as Binance CEO in 2023, continues to work with regulators globally.
Despite no longer leading Binance, Zhao remains involved in the development of the BNB Chain, a blockchain hosting over 4,000 projects. He is the largest owner of BNB tokens, controlling a significant portion of the circulating supply.
Hong Kong is set to release a more detailed policy framework on digital assets by the end of the year, building on its initial virtual asset policy from 2022. This move aligns with the city’s goal of positioning itself as a cryptocurrency hub amidst divergent regulatory approaches worldwide.
As Hong Kong navigates its path in the cryptocurrency space, Zhao’s insights highlight the importance of expanding the range of available cryptocurrencies on licensed exchanges. By embracing a broader selection of tokens, Hong Kong can enhance its competitiveness on the global stage and attract a wider range of investors and traders. The city’s commitment to regulatory clarity and innovation will be crucial in shaping its future in the rapidly evolving world of digital assets.