Singapore and Hong Kong’s crypto goals on track despite challenge from US Bitcoin ETFs
Singapore and Hong Kong are facing challenges in their bid to become Asia’s cryptocurrency finance capital following the debut of Bitcoin Exchange Traded Funds (ETFs) in the United States last month.
Financial professionals believe the Bitcoin ETFs could pave the way for other similar products. Overall interest in cryptocurrencies has increased in recent weeks because of the announcement of the ETFs, which are a pooled investment security that can be bought and sold like stocks.
A decade in the making, crypto ETFs are seen as game-changers as investors need not buy or hold the digital coins but could gain from exposure to their market value, providing a major boost to the crypto industry.
Droves of global crypto industry players have flocked to Singapore and Hong Kong over the past year or so following a US regulatory crackdown on the crypto industry. The ETF launch has, however, revived interest in the US crypto market.
“There will be returns given Silicon Valley and digital hubs are still quite strong in the US. But most of the people are taking a wait-and-see attitude before making a beeline back into the US,” said Danny Chong, co-founder of Tranchess, a tracking protocol that provides yield-enhancing solutions for crypto assets.
“I do foresee Asia continuing to have a bit more advantage or a smooth path, and having people working in this space,” he added.
The ETF announcement comes after the SEC previously imposed fines and other penalties against errant crypto-lending firms. Officials of major banks have also issued policy statements indicating their tough stance on credit access for crypto firms.
In contrast, Singapore and Hong Kong have over the past few months been easing rules for the granting of licences to crypto