Earlier on Tuesday, Jeremy Allaire, co-founder and chief executive officer of Circle, said in an interview with Bloomberg that, “Hong Kong clearly is looking to establish itself as a very significant centre for digital asset markets and for stablecoins, and we are paying very close attention to that.”
Asia is “a huge area of focus,” he continued, as it is the issuer of USD Coin, the second-largest stablecoin in the world.
Circle was granted a licence as a major payments institution in Singapore, allowing it to provide digital payment token services as well as domestic and cross-border money transfer services in the city-state. The Singapore licence will enable Circle to distribute its USD Coin “more fully in the region.”
Starting June 1, Hong Kong exhibited a new crypto regulatory regime at a time when global digital asset companies are seeking new destinations that are suitable and safe for investors amid a suppression in the US. However, Hong Kong has yet to come out with regulations controlling stablecoins.
Even though trading on the mainland is still prohibited, Beijing quietly supports Hong Kong’s transition towards becoming a digital-asset hub. The new Hong Kong attitude has raised optimism that China may withdraw its crypto prohibition sooner rather than later.
“What’s happening in Hong Kong may be a proxy for ultimately how do these markets grow in Greater China,” Allaire said.
Jurisdictions like Hong Kong and Dubai are seeking to attract companies, while Singapore plans curbs on retail investor participation. In April, the European Union approved the most comprehensive digital asset rules of any developed economy.
“We see enormous demand for digital dollars in emerging markets, and Asia is really the centre of that,” Allaire stated.
- Published By Team Genuine Reporter