Hong Kong lawmaker courts Coinbase amid US legal troubles Hong Kong lawmaker courts Coinbase amid US legal troubles
Hong Kong lawmaker John Ng revealed he has contacted Coinbase about expanding to the region amid its regulatory issues in the U.S.
2 min read
Updated: Jun. 14, 2023 at 1:37 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Hong Kong Legislative Council member Johnny Ng has contacted Coinbase in his bid to help the exchange register in the region, according to a June 14 tweet.
Ng wrote:
“I have already got in touch with Coinbase, and we will learn more about the development opportunities in Hong Kong together.”
On June 10, Ng invited global virtual asset trading operators, including crypto exchange Coinbase, to apply to operate in the region. At the time, the lawmaker said he would be “happy to provide any assistance” to make the process seamless.
This public offer follows recent regulatory troubles in the United States targeted at crypto firms. Last week, the Securities and Exchange Commission (SEC) filed lawsuits against two major crypto platforms, Coinbase and Binance, over federal securities law violations.
Coinbase eyes expansion
Prior to the SEC’s lawsuit, Coinbase had been actively working to expand offshore in response to the unfavorable regulatory environment.
To expand its reach beyond the U.S., Coinbase launched an international exchange in May. This platform allows institutional traders to access Bitcoin (BTC) and Ethereum (ETH) perpetual futures.
Coincidentally, the exchange announced a partnership with Austrian fintech firm Bitpanda, also aimed at extending its institutional trading services to a global audience.
Coinbase VP of International & Business Development Nana Murugesan later revealed that the exchange was considering using the United Arab Emirates as the hub for its international service in the Middle East.
Despite these moves, Coinbase CEO Brian Armstrong has maintained that the company will always have a U.S. presence.
Hong Kong attracts crypto firms
Meanwhile, Hong Kong is making strides in creating a framework to allow crypto firms to work compliantly within its borders. Hong Kong’s Monetary Authority (HKMA) recently said it aims to introduce a comprehensive regulatory framework for stablecoins within 18 months.
These moves aim to attract market participants from countries like the U.S. with more stringent regulations.
Already, several crypto exchanges, like Huobi, CoinEx, and OKX, have moved to set up shop in the area since it enabled retail access to crypto trading on June 1.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,468.01
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
OKX
OKX is a world-leading digital asset exchange, providing advanced financial services to global traders by using blockchain technology.
Brian Armstrong, co-founder and CEO of Coinbase, stands at the forefront of the digital currency revolution.