Aussie crypto exchange hints interest in Hong Kong base, but it’ll depend

Australia-based crypto speech Independent Reserve is looking astatine opportunities to acceptable up store successful Hong Kong, arsenic the metropolis continues efforts to go a cryptocurrency hub. 

Set to instrumentality effect successful June, the Hong Kong Securities and Futures Commission (SFC) released a proposed licensing authorities for cryptocurrency exchanges connected Feb. 20 successful enactment with its ambitions to go Asia’s adjacent crypto hub.

Independent Reserve co-founder and CEO, Adrian Przelozny told Cointelegraph the “friendly” licensing authorities makes Hong Kong a worthy destination to acceptable up a caller base, thing his steadfast is present powerfully considering.

“Right present it is looking precise absorbing [...] The caller announcement by the regulators successful Hong Kong does marque Hong Kong look similar a affable jurisdiction.”

“We spot Hong Kong arsenic a bully accidental for Independent Reserve and we’re ever looking astatine caller areas successful Asia wherever we tin grow our business,” helium added.

The imaginable determination would travel the likes of its peers Huobi and OKX.

CEO Adrian Przelozny pictured successful halfway with COO Lasanka Perera (left) and CTO Roman Stefanidi (right) Source: Independent Reserve

Under the caller licensing regime, Hong Kong-based crypto companies volition request to comply with a scope of measures relating to the harmless custody of assets, Anti-Money Laundering (AML), Know Your Customer (KYC) and counter-financing of coercion countermeasures on with struggle of involvement disclosures and audits.

Przelozny said his squad is visiting Hong Kong adjacent week to conscionable with banks, regulators, lawyers and compliance experts to find if it’s suitable to grow to.

Commenting connected the region's governmental narration with China, Przelozny believes China is investigating however a much relaxed cryptocurrency authorities looks successful Hong Kong.

If successful, helium believes China whitethorn travel suit:

“The Chinese authorities is utilizing Hong Kong arsenic a testnet to experimentation with a looser cryptocurrency authorities to spot what interaction that has connected the concern scenery there. If they spot it arsenic a affirmative thing, past I deliberation there’s a accidental they'll rotation it retired done China and loosen their existing restrictions.”

Similar remarks were made by Tron CEO Justin Sun successful a December interview on Bloomberg.

He is of the presumption that China is utilizing Hong Kong arsenic an “experiment base” truthful that it tin marque a last determination connected wherever its argumentation stance lies.

Related: Hong Kong’s crypto ambition gets subtle motion from Beijing: Report

Przelozny is, however, cautious it whitethorn lone correspond a “transitory experiment” which could beryllium reversed successful the future.

If Independent Reserve is satisfied with the regulatory landscape, Przelozny said the past checkbox to tick volition beryllium however costly it is to unfastened up store determination and what it thinks the instrumentality connected concern volition beryllium for doing so.

Independent Reserve operates arsenic a licensed virtual-asset work supplier successful Singapore.

It besides precocious launched Bitcoin.com.au aft purchasing the domain sanction for $2 cardinal ($3 cardinal AUD).

Longstanding Australian crypto speech Independent Reserve has bought https://t.co/caP4K5Kwnn.https://t.co/ococz49Hwe pic.twitter.com/lRHaPi5vhe

— Independent Reserve (@indepreserve) March 23, 2023

Over 80 cryptocurrency firms crossed mainland China and elsewhere person expressed involvement successful establishing a beingness successful Hong Kong of late, according to a March 20 connection by Christian Hui, the Secretary for Financial Services and the Treasury.

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