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Crypto Services by SEBA Bank Approved for Launch in Hong Kong

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The Hong Kong sector of SEBA Bank, a Swiss financial institution supportive of cryptocurrencies, has received initial endorsement from the Hong Kong Securities and Futures Commission (SFC). This authorization allows the bank to participate in transactions involving digital assets. On August 30, SEBA announced that its recent license empowers the bank to provide crypto services, including over-the-counter derivatives, guidance on virtual assets, and the management of assets for discretionary accounts that encompass both digital assets and traditional securities.

It’s important to note that the Hong Kong division won’t possess the capability to convert between fiat currencies and cryptocurrencies. However, it can direct clients to its headquarters in Zug, which possesses the necessary license for such conversions.

Hong Kong has become the third market where SEBA has pursued a licensing process, following its activities in Switzerland and Abu Dhabi. With this preliminary approval in place, SEBA is now preparing for its operations once the official license is secured. Amy Yu, CEO of the Asia Pacific region at SEBA Bank, foresees that the official approvals will be granted by the conclusion of 2023. Regarding their expansion into Hong Kong, she further remarked, “We initially focused on Hong Kong as our starting point, given that it’s the first jurisdiction in the region. However, we are also exploring opportunities in Singapore.”

Exploring Hong Kong’s Potential as a Crypto Powerhouse

SEBA Bank’s most recent approval coincides with a series of regulated developments in the crypto space occurring within Hong Kong. Notably, HashKey, a cryptocurrency exchange, secured regulatory clearance as the first of its kind in the region. It’s important to highlight that HashKey and SEBA had previously joined forces in 2022 with the aim of fostering institutional adoption of cryptocurrencies.

While various companies are turning their attention to the region, SEBA’s participation stands out. According to Yu, SEBA’s decision was motivated by the expressed demand from crypto companies. These entities have been grappling with challenges in effectively managing and accessing their digital asset holdings through conventional channels. Additionally, considerable interest has emerged from private wealth and family offices. Yu elaborated, stating, “Crypto firms typically lack strong connections with traditional financial market providers. We are well-equipped to engage with these types of clients.”

HKVAX Carves A Crypto Path: Hong Kong’s Third Licensed Virtual Asset Exchange

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Hong Kong Virtual Asset Exchange (HKVAX) has achieved a significant milestone on its journey toward becoming a licensed crypto asset trading platform. The company recently announced that it had received a notice of approval in principle from the Hong Kong Securities and Futures Commission (SFC), positioning it as the third licensed operator in the virtual asset space within the region, following in the footsteps of OSL HASHKEY.

The approval-in-principle from the SFC allows HKVAX to engage in regulated activities of Type 1 (dealing in securities) and Type 7 (providing automated trading services). This development marks a crucial step for HKVAX, which Hong Kong entrepreneurs founded to bridge the gap between traditional finance and the burgeoning digital asset landscape. 

The company aspires to set a new standard in digital asset trading and contribute to the evolution of the financial sector in the East. Dr. Anthony Ng, Co-Founder and CEO of HKVAX, expressed his enthusiasm, stating, “Hong Kong has grown into a hothouse for innovative technologies, fintech, and virtual assets.” He emphasized the company’s commitment to establishing a secure and trusted environment for investors in one of the world’s most dynamic financial centers.

Upon obtaining final approval for its Type 1 and Type­ 7 licenses, HKVAX intends to introduce­ a variety of offerings that cater to dive­rse investor nee­ds. These strategic initiative­s include an over-the-counte­r (OTC) brokerage service­ with high liquidity, an institutional-grade exchange platform, and a compre­hensive custody solution that ensure­s asset segregation and come­s with insurance coverage.

The approval coincide­s with regulatory changes proposed by the­ Hong Kong Government and the SFC. The­se changes refle­ct Hong Kong’s commitment to exploring financial innovations and mee­ting the growing demand for crypto assets from various inve­stor categories, promoting a responsible­ and sustainable virtual asset industry.

HKVAX to Offer Diverse Crypto Investment Options

HKVAX also underscores its commitment to comprehensive governance, compliance, risk management, and security in the crypto industry. Sam Fok, Co-Founder, and COO, emphasized the company’s collaborative efforts with the government and stakeholders to strengthen regulations and provide investors transparency, reliability, and protection.

In its mission to create­ a global ecosystem for investors, HKVAX is forming partne­rships with licensed platforms in major financial hubs like Ne­w York, London, and Singapore. This strategic initiative aims to e­xpand clients’ access to diverse­ investment opportunities worldwide­.

Howeve­r, in the ever-changing virtual asse­t landscape, HKVAX’s accomplishments and aspirations mark a crucial moment for Hong Kong’s financial se­ctor and its role in the wider global digital asse­t industry.

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Crypto Firms Alert: Hong Kong Watchdogs Flag Concerns

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In a move signaling growing concerns over the proliferation of cryptocurrencies and their associated risks, Hong Kong’s financial watchdog has issued a stark warning to digital asset firms operating within its jurisdiction. The Hong Kong Securities and Futures Commission (SFC) recently released a statement emphasizing the need for compliance with existing regulatory frameworks and heightened diligence in the virtual asset sector.

As the popularity of digital assets continues to surge, governments and financial regulators worldwide are grappling with the challenge of creating effective regulatory frameworks to ensure investor protection and financial stability. Hong Kong, known for its bustling financial landscape, has taken a proactive stance in addressing the digital asset industry’s potential pitfalls.

The SFC’s warning underscores its commitment to safeguarding the interests of investors and maintaining market integrity. The statement highlights the risks associated with initial coin offerings (ICOs) and digital asset trading platforms. The regulatory authority reminds crypto firms of the importance of obtaining the necessary licenses and adhering to anti-money laundering (AML) and counter-terrorist financing (CTF) obligations.

While innovation and technological advancements are welcome, the SFC emphasizes that these should not come at the expense of regulatory compliance. The crypto industry’s rapid evolution has led to concerns about its susceptibility to fraudulent activities and illicit financial practices. By reminding crypto firms of their responsibilities, the SFC aims to strike a balance between fostering innovation and protecting investors.

This move comes amid a broader global trend of regulatory agencies tightening their grip on the virtual asset sector. Countries like the United States, the United Kingdom, and Japan have already implemented stringent regulations to curb potential risks. Hong Kong’s warning signals its intention to align with these international efforts and contribute to the global drive for a safer crypto landscape.

Regulatory Compliance: Key to Responsible Crypto Growth

The SFC’s cautionary note also serves as a reminder to investors to exercise caution and perform due diligence before engaging with digital asset-related activities. As the industry remains nascent and largely unregulated, investors should be vigilant and avoid falling victim to fraudulent schemes that promise unrealistically high returns.

Furthermore, the Hong Kong Financial Watchdog’s recent warning to virtual asset firms is a significant step toward ensuring a secure and transparent crypto environment. By advocating for regulatory compliance and emphasizing the importance of investor protection, Hong Kong’s regulatory authority is setting a precedent for responsible crypto industry growth. As the global regulatory landscape continues to evolve, collaboration between regulators, crypto firms, and investors will be pivotal in shaping the future of cryptocurrencies.

HashKey’s Crypto Revolution: Hong Kong’s First Licensed Retail Trading Platform 

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In a significant move for Hong Kong’s burgeoning cryptocurrency scene, HashKey Exchange has unveiled its official upgrade of licenses, securing its position as the first licensed trading platform catering to retail users in the city. This strategic development marks a pivotal moment in the evolution of Hong Kong’s crypto landscape.

https://twitter.com/HashKeyExchange/status/1686977519701164032?

Under the recently established regulatory framework, HashKey Exchange is now the first licensee, paving the way for legal retail trading of tokens within the city. This move aligns with Hong Kong officials’ vision of propelling the metropolis into a global epicenter for digital asset endeavors.

Upgrading HashKey’s existing licenses grants the platform the authority to expand its services from serving solely professional investors to encompass retail users. This expansion aligns seamlessly with the Securities and Futures Commission’s guidelines for Virtual Asset Trading Platform Operators, instituted just this June.

Collaborating with Standard Chartered Bank, HashKey Exchange is poised to introduce fiat currency deposit and withdrawal services to its users, streamlining the onboarding process and enhancing accessibility.

The company’s forward-looking approach doesn’t stop there. HashKey also announced the debut of its virtual asset over-the-counter trading service, further diversifying its offerings and solidifying its position as an industry trailblazer.

Rise Of Hong Kong As A Crypto Hub

HashKey’s ascent to the forefront of Hong Kong’s crypto scene underscores the city’s efforts to reinstate its reputation as a dynamic financial hub. This decisive pivot toward crypto starkly contrasts the prevailing atmosphere in the United States, where regulatory constraints have hindered the sector’s growth.

Nevertheless, after last year’s market downturn, the crypto industry remains cautious, signaling a more measured approach to new investments. The overarching sentiment among major digital-asset entities is a wariness to divulge specific investment strategies in the Hong Kong market.

Amid this landscape, HashKey’s pioneering status sets the stage for further developments. Hong Kong’s crypto trajectory gains momentum as other players like Huobi, OKX, and Amber Group express intentions to follow suit in applying for licenses. 

Nevertheless, as the global digital asset industry shifts its focus towards Asia, jurisdictions such as Hong Kong, Japan, Singapore, and South Korea vie for attention. This Eastern surge in regulatory clarity and crypto openness challenges established players like Dubai and the European Union while the United States grapples with its own internal conflicts and uncertainties.

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Hong Kong Central Bank Joins Forces With Saudi Arabia Amid UAE’s Crypto Surge

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Hong Kong Monetary Authority (HKMA) and Saudi Central Bank (SAMA) Forge Momentous Financial Collaboration with MoU. Following a Successful Partnership with UAE Central Bank, HKMA Aims for Enhanced Financial Services and Innovations

The Saudi Central Bank (SAMA) and the Hong Kong Monetary Authority (HKMA) convened on July 26 for a bilateral meeting to enhance the integration of financial services between their respective nations.

During the meeting, the HKMA and the SAMA addressed various initiatives, including financial infrastructure advancement, open market operations, market connectivity, and sustainable development. Additionally, the central banks formalized their commitment to fostering collaborative discussions on financial innovation by signing a memorandum of understanding (MoU).

As per an official joint statement, HK and Saudi Arabia authorities also utilized the occasion to exchange knowledge and expertise in various domains, including tokenization, payment infrastructure, and supervision technologies.

According to Eddie Yue, who serves as the Chief Executive of the HKMA:

The MoU, in particular, will further enhance mutual cooperation as well as exchange of information and expertise between the SAMA and the HKMA in financial innovation and Fintech. We look forward to working with the SAMA to promote investment and financial market connectivity between the Middle East and Asia.

Hong Kong Emerges As Leading Crypto Hub With Pro-Crypto Regulation

Recently, Hong Kong has been determined to establish itself as a prominent global crypto hub. To this end, the region has unveiled a comprehensive crypto licensing regime and virtual asset regulations designed to attract and nurture crypto-related businesses. The pro-crypto regulatory environment has proven highly appealing, leading numerous crypto exchanges and firms to seek licenses in HK, driven by the escalating demand for digital assets.

Hong Kong is actively engaged in multiple cross-border tokenization projects. In mid-June, BOCI, the investment bank subsidiary of the Bank of China, launched a $28 million tokenized security within Hong Kong. The tokens were created on the Ethereum blockchain, utilizing Goldman Sachs’ tokenization protocol GS DAP, with each token representing a claim on the Hong Kong dollar.

The collaboration between Hong Kong and Saudi Arabia marks a pivotal moment in strengthening financial ties and fostering innovation in the financial sector. As this partnership unfolds, it is expected to have far-reaching implications, not only regionally but also on the global economic stage.

Related Reading:| Hong Kong’s Stablecoin Dream: HKDG Aims To Redeem

Digital Yuan’s Cross-Border Soar: Hong Kong Trials Galore

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China’s central bank digital currency, known as the digital yuan, is witnessing a growing adoption and an increase in use cases. However, it is important to note that despite this expansion, the digital yuan only accounts for a mere 0.16% of China’s overall monetary supply.

The country’s central bank governor, Yi Gang, reported that the digital yuan has facilitated transactions worth nearly $250 billion during the one-and-a-half-year period since its pilot launch. As of the end of June, the total value of transactions reached an impressive 1.8 trillion yuan.

During this time, approximately 950 million transactions were conducted through around 120 million digital yuan wallets, resulting in an average transaction amount of roughly $260.

Despite the significant progress, it is evident that there is still considerable room for growth. By the end of June, only $2.3 billion, equivalent to 16.5 billion digital yuan, was in circulation, accounting for just 0.16% of China’s monetary supply. This data was sourced from a July 19 report by Reuters.

The digital yuan’s adoption is particularly modest when compared to China’s vast population of 1.4 billion. While there have been a few trials in Hong Kong, the primary usage of the digital yuan remains within the domestic retail payments landscape.

In an effort to further enhance cross-border applications, the Bank of China Hong Kong initiated a trial of a cross-border payment scheme for its customers at select retail stores in Hong Kong. This move marks the third cross-border trial of the central bank digital currency in Hong Kong, as reported by the South China Morning Post on July 18.

Lagging Behind: Digital Yuan vs. Public Blockchains

Last year, the BOCHK ran a program encouraging customers to set up BOC e-CNY wallets, rewarding them with $14 (100 yuan) for use at the Hong Kong supermarket chain U Select.

To expand the potential use cases of the digital yuan, the central bank integrated smart contract functionality in January. However, despite these developments, the digital yuan’s value processed in transactions, amounting to $250 billion, represents an impressive 70% increase from the figure cited in August 2022.

Nonetheless, it is essential to recognize that the asset’s transaction value still lags significantly behind that of major public blockchains. For instance, in 2022, Bitcoin alone facilitated transactions worth $8.2 trillion, as reported by various sources.

In conclusion, while the asset’s adoption and use cases continue to grow, there is still a long way to go before it becomes a substantial part of China’s monetary landscape, especially when compared to other cryptocurrencies and traditional payment methods.

Mainland Chinese Crypto Users Flock To Hong Kong’s Unregulated OTC Shops: Report

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In a bid to circumvent China’s strict crypto regulations, an increasing number of mainland Chinese users are flocking to unregulated over-the-counter (OTC) shops in Hong Kong to purchase cryptocurrencies, according to the latest report.

These brick-and-mortar stores offer a convenient and discreet way for customers to buy digital assets with cash without revealing their identities or the origin of their funds. 

With Hong Kong’s current laws and regulations in a regulatory gray area regarding offline cryptocurrency exchanges, these OTC shops have thrived without stringent oversight.

Crypto Trading Flourishes In Hong Kong Amid China’s Ban

Despite the Chinese government’s ban on crypto transactions and restrictions on overseas exchanges serving onshore clients, crypto trading is legal in Hong Kong. The city aims to position itself as a global digital assets trading hub, attracting both local and international investors. 

The surge in demand from mainland Chinese visitors, coupled with the ambiguous regulatory status of OTC shops, has contributed to their flourishing presence in Hong Kong’s popular tourism and shopping districts.

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The appeal of these OTC shops lies in their ability to facilitate large-volume cryptocurrency transactions with minimal regulatory checks. Unlike online exchanges that operate under tight licensing rules, OTC stores provide a more accessible avenue for users to convert their fiat currencies into digital assets. 

Before the China-Hong Kong border reopening in February, mainland Chinese customers accounted for a small percentage of OTC shop clientele. However, the relaxation of travel restrictions has significantly increased, with mainland users now constituting over 50% of customers at some OTC shops.

Although Hong Kong implemented new regulations requiring online cryptocurrency platforms to obtain licenses in June, OTC shops largely remain outside the purview of the city’s Securities and Futures Commission. 

While some shops, such as OTCXpert, have implemented a “know your customer” process, requesting identification from first-time customers, many operate without identification requirements, advertising quick and hassle-free transactions.

As mainland Chinese customers seek ways to navigate China’s crypto ban and capital controls, Hong Kong’s unregulated OTC shops offer an attractive solution. 

However, the lack of oversight and proximity to mainland China present challenges for regulatory authorities. While some industry players welcome increased regulation to promote the development and legitimacy of the sector, a clear guide from government regulators regarding OTC shops is necessary.

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Embracing Web3: Circle CEO Optimistic About Hong Kong’s Digital Asset Future

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Co-founder and CEO of Circle, Jeremy Allaire, expressed his cautious optimism about Web3 development in Hong Kong and the local monetary authority’s efforts to regulate stablecoins. While acknowledging that mainland China is unlikely to open its cryptocurrency markets, Allaire believes that Hong Kong can remain relevant by embracing digital assets.

Hong Kong’s Regulatory Focus On Stablecoins: Circle Encouraged

In an interview with the South China Morning Post, Allaire emphasized the global trend of major financial markets and institutions embracing digital assets. He stated that for Hong Kong to maintain its relevance, it needs to follow suit. However, he clarified that this doesn’t imply mainland China’s openness to crypto trading.

Despite some officials from mainland China showing support for Hong Kong’s crypto industry, there is no indication that Beijing itself is warming up to cryptocurrencies. 

Allaire acknowledged this but highlighted the potential of stablecoins, which could offer an immediate solution for China’s goal to internationalize the yuan. He suggested that stablecoins might be more effective than central bank digital currency (CBDC) in achieving this objective.

Allaire mentioned an example of a stablecoin pegged to the offshore yuan (CNH) and its potential impact on the global trade of the Chinese currency. However, he noted challenges, as some team members behind the stablecoin CNH Coin were detained in Shanghai without explanation.

Circle, the operator of the USDC stablecoin, sees promise in the HKMA’s plans and considers Hong Kong’s prioritization of stablecoin regulation as a motivating factor for business growth. Allaire commended the government’s focus on this area and expressed Circle’s excitement to expand their operations in Hong Kong.

Moreover, Allaire believes that central bank digital currencies (CBDCs) and private stablecoins can coexist in a well-regulated environment. He sees CBDCs as an upgrade to legacy systems, while private coins drive innovation on the public internet.

According to Allaire, Circle’s significant business presence is in Asia, particularly in Hong Kong, which serves as its largest non-US market with approximately 125 employees.

Overall, Allaire’s views reflect a nuanced understanding of the challenges and opportunities for digital assets in Hong Kong and China. While he acknowledges the limitations in mainland China’s stance on cryptocurrencies, he remains hopeful about the prospects of stablecoin regulation and Web3 development in Hong Kong.

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Hong Kong’s Stablecoin Dream: HKDG Aims To Redeem

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To enhance competition with stablecoins like USDT and USDC, a recent policy proposal advises the Hong Kong government to create its own stablecoin, HKDG, supported by its foreign exchange reserves.

Wang Yang, the Vice Chancellor of the Hong Kong University of Science and Technology and Chief Scientific Advisor of the Hong Kong web3 Association, along with angel investor Cai Wensheng, BlockCity founder Lei Zhibin, and Ph.D. student Wen Yizhou, co-authored the paper. The news was initially reported by Wu Blockchain.

The proposal underscores the significance of these coins as a means to connect traditional finance with the digital economy. It highlights the perceived advantages, as identified by the authors, of a stablecoin pegged to the Hong Kong Dollar. These benefits include improving financial inclusiveness, enhancing transaction efficiency, reducing costs, refining payment systems, and reinforcing the fintech capabilities of the Chinese special administrative region.

According to the experts, the current government plan, which permits private institutions to issue stablecoins, lacks ambition and may lead to a restricted market share. They make a comparison between Singapore’s XSGD stablecoin, issued by Xfers, which has a market capitalization of $6.6 million, and USDT and USDC combined, which exceed $110 billion. The proposal points out that Hong Kong’s foreign exchange reserves, totaling around $430 billion as of March, surpass the combined market capitalization of USDT and USDC. Consequently, the proposal suggests that an HKDG stablecoin supported by the government would offer greater credibility and reduced risk.

Stablecoin Risks Acknowledged, HKDG Shines As Safer Option

The proposal recognized possible risks like legal and regulatory challenges, technical uncertainties, and short-term exchange rate fluctuations. However, it contends that the risks associated with the government-issued HKDG would be lower compared to these coins issued by private entities.

Furthermore, the paper put forth the notion that HKDG would enable Hong Kong to make significant progress in the direction of reducing reliance on the U.S. Dollar and confronting its supremacy within the crypto ecosystem. The experts asserted that HKDG could additionally offer increased liquidity for government investment initiatives, facilitate the digital transformation of traditional assets, foster financial innovation and competitiveness, and enhance transparency.

In a recent development, Hong Kong has indicated its intention to regain its status as a prominent global center for the cryptocurrency industry. To achieve this goal, the region has established a web3 task force with the aim of cultivating a flourishing ecosystem in the area.

Tangem X SHIB Wallets En Route To Hong Kong Warehouse, Delivery Expected On July 24

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In an exciting development for the SHIB community, the first batch of Tangem X SHIB wallets is currently in transit to the company’s warehouse located in the bustling city of Hong Kong. This news comes as a delight to eagerly awaiting customers who have placed orders for these innovative wallets.

The logistics team at Tangem is meticulously coordinating the delivery process to ensure a smooth and efficient shipping experience for customers. 

Once the items have been shipped, a fulfillment email containing essential details, including a tracking number or link, will be sent to each customer. It will enable them to easily monitor the progress of their order and anticipate its arrival.

The estimated start date for deliveries has been set for July 24, providing customers with an exciting countdown to the much-anticipated arrival of their Tangem X SHIB wallets. 

However, it is essential to note that customers should not expect to receive the tracking email before this date, as the team at Tangem is working diligently to fulfill all orders within the specified timeline.

Discount Code for SHIB Community As A Token Of Gratitude

Expressing gratitude for the support and patience demonstrated by their valued customers, Tangem extends a gesture of appreciation in the form of a discount code.

This exclusive discount code, HAPPY10, can be applied during checkout to avail a 10% discount on any future wallet purchases. Tangem hopes that this discount will add to the joy of owning their cutting-edge wallets and further strengthen the bond with their loyal customer base.

Furthermore, Tangem is committed to enhancing customer satisfaction by expanding its customer care team. By rapidly growing its support staff, Tangem aims to provide an unparalleled level of service, ensuring that every customer query is promptly addressed. 

Tangem recently announced several exciting updates in the latest release of the Tangem App. These updates include support for WalletConnect 2.0, enabling seamless connectivity with various wallets and decentralized applications. 

Additionally, Bitcoin enthusiasts can now send Bitcoins even when there is an active incoming transaction, a feature currently available on iOS and pending release on Android. 

Furthermore, the introduction of a custom tokens screen allows users to set derivation paths for all blockchains, empowering them with greater control over their digital assets. Users are encouraged to update their Tangem App by visiting the App Store or Google Play to experience these exciting new features firsthand.

As the anticipation builds and the first batch of Tangem X SHIB wallets makes its way to the Hong Kong warehouse, Tangem eagerly awaits the moment when customers will finally receive their wallets. 

The combination of cutting-edge technology and exceptional customer service positions Tangem as a leader in the world of blockchain wallets, and their dedication to innovation continues to drive their success. 

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