Hong Kong is not taking a step back when it comes to crypto trading. According to the chair of the FinTech Association of Hong Kong (FTAHK), Neil Tan, the city-state is still “gung-ho” about giving its citizens access to cryptocurrencies, despite other jurisdictions pulling back. While Singapore and the United States are seemingly stepping back from permitting crypto retail trading, Hong Kong is stepping forward.

Speaking to Cointelegraph at the Hong Kong WOW Summit in March, Tan said that there were no other options but to move forward with crypto licensing. This is due to the growing demand for crypto trading among the citizens of Hong Kong.

The FTAHK is an industry association that represents Hong Kong’s fintech industry. It aims to promote and support the development of fintech in Hong Kong. The association was established in 2017 and has over 250 members from various sectors of the fintech industry.

Hong Kong has been known for its friendly stance towards cryptocurrencies. In 2019, the Securities and Futures Commission (SFC) introduced a new regulatory framework for cryptocurrency exchanges operating in Hong Kong. The framework requires all cryptocurrency exchanges to obtain a license from the SFC and comply with anti-money laundering (AML) and know-your-customer (KYC) requirements.

The FTAHK has been actively involved in the development of this regulatory framework. The association has been working with the SFC to ensure that the framework is conducive to the growth of the cryptocurrency industry in Hong Kong.

According to Tan, the FTAHK has been working with the SFC to create a sandbox for cryptocurrency companies to test their products and services. The sandbox will allow companies to test their products and services in a controlled environment, without the risk of running afoul of regulations.

The FTAHK is also working with the Hong Kong Monetary Authority (HKMA) to develop a central bank digital currency (CBDC). Tan said that the HKMA is taking a “pragmatic approach” to the development of a CBDC, and is working with the FTAHK to ensure that the CBDC is developed in a way that benefits the citizens of Hong Kong.

Hong Kong’s crypto industry has been growing steadily in recent years. According to a report by the University of Hong Kong, the city’s blockchain industry has grown from just a handful of companies in 2016 to over 80 companies in 2020. The report also noted that Hong Kong has a strong talent pool in the blockchain and cryptocurrency fields, and is well positioned to become a leading hub for blockchain innovation.

In conclusion, Hong Kong’s crypto industry is still going strong. Despite other jurisdictions pulling back, Hong Kong is moving forward with crypto licensing and development of a CBDC. The FTAHK is actively working with regulators to ensure that the regulatory framework is conducive to the growth of the cryptocurrency industry in Hong Kong. With a growing talent pool and a supportive regulatory environment, Hong Kong is well positioned to become a leading hub for blockchain innovation.