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The global fintech industry is growing with countries and companies pledging their sides of the cryptocurrency fence. For example, Hong Kong and China sit on opposing sides, so much so that their rival stance on cryptocurrency has become a hot topic in crypto news.
Despite China’s ban on cryptocurrency, which dates to far back 2011, Hong Kong has announced that they are determined to be the crypto hub of the world and will invest $100 million into cryptocurrency companies.
This is great news for established cryptocurrencies like Bitcoin and Ethereum as well as new cryptocurrencies such as Signuptoken.com and EcoTerra.
Hong Kong’s Bid for Crypto Hub Status Reinforced by Strict Foreign Crypto Regulations
Over 20 cryptocurrency companies have announced their plans to operate in Hong Kong. Also, over 80 institutions have revealed their interests in settling in the country. In addition, cryptocurrency exchanges such as Binance, KyCoin and OKX are already operating in Hong Kong.
While Hong Kong is paving the way for Web3 and quickly emerging as the cryptocurrency hub, China, on the other hand, has banned cryptocurrency since 2021 and deemed anonymous and decentralised digital currencies to be too high risk. China’s anti-crypto stance is to curb financial crime and economic volatility.
However, Hong Kong is determined to entice the high global demand for blockchain finance, especially since the U.S. Securities and Exchange Commission (SEC) issued fines and sanctions to crypto lending companies. Hong Kong also plans to attract business from Singapore where cryptocurrency regulations are becoming increasingly strict.
What Does Hong Kong’s Hub Status and Crypto Regulations Mean for Cryptocurrency Companies?
Governments worldwide have recently felt the need to introduce cryptocurrency regulations and proposals. Consequently, strict legislation has been their way of protecting new and existing investors in blockchain technology as well as the companies themselves. This could be due to some recent events in the cryptocurrency market such as the collapse of FTX and Silvergate.
Although China’s and Singapore’s regulations have stifled their cryptocurrency market’s potential, Hong Kong has made incredible strides to invest in its future. The cryptocurrency has its fair share of risks much like any other new investment opportunity. It is Hong Kong’s innovation and regulations that attempt to solve these issues by allowing cryptocurrency companies to thrive while attempting to make cryptocurrency business more safe for investors and companies.
Cryptocurrencies could benefit from Hong Kong’s rule that will become effective in June. All crypto trading platforms will need to be licensed by the Securities and Futures Commission. In addition, Hong Kong has an attractive lower tax policy that cryptocurrency businesses could greatly benefit from. Only 8.25% is taxed for the first 2 million Hong Kong dollars businesses make which is around $254,930. Profits that exceed this number will then be taxed at 16.5%.
Innovation is Key to Cryptocurrency Market’s Success
Similarly, cryptocurrencies such as Signuptoken.com are also taking the reins on being an innovative, attractive and a potentially low-risk, high-gain opportunity for cryptocurrency investors. Signuptoken.com have been gaining traction in their short time, the new alt-coin boasts of its Millionaire Club and its huge potential benefits. Currently at 3,000 email signups once it reaches its goal of 1 million, it will launch on UniSwap with no presale.
This is great news for investors for two reasons: firstly, no presale means no capital risk, and secondly, a lot of cryptocurrency companies and decentralised exchanges (DEX) and platforms like UniSwap have considered branching out to crypto hub Hong Kong which could mean more potential for growth in the future.
Hong Kong’s plans are exciting news for the cryptocurrency market and their investments and proactive approach to fintech growth makes them a highly attractive new crypto hub, despite China’s anti-crypto views. Additionally, in spite of the recent global market trends, existing and new cryptocurrencies are bouncing back and emerging every day to make the cryptomarket an investment to watch this year.
For more information on Signuptoken.com:
Website: https://www.signuptoken.com
Twitter: https://twitter.com/_SignUpToken_
Telegram: https://t.me/SignUpToken
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