The collapse of FTX did not overshadow Hong Kong’s ambitions as a crypto hub.
Despite the industry-changing failure of the Sam Bankman-Fried FTX exchange, Hong Kong is still striving to establish itself as a regional powerhouse for cryptocurrency, a distinctive place for fintech and other startup companies, and a destination for new firms from around the globe.
Singapore pulls back, frightened by the fallout from the FTX collapse.
According to the city’s policy announcement, several top startups and tech companies are now thinking about relocating or expanding to Hong Kong as rival Singapore backs down out of fear of the consequences of FTX’s failure.
Paul Chan, the financial secretary for Hong Kong, claims that the city has a robust regulatory system that complies with global standards.
However, the cryptocurrency sector, like many other industries, is cautiously evaluating Hong Kong’s posture given the perception that Beijing, which has prohibited the majority of businesses from engaging in crypto activities, is increasingly seizing control of the financial hub.