Independent Reserve, an Australian cryptocurrency exchange, is considering opening a branch in Hong Kong as the city strives to establish itself as a major cryptocurrency hub.
Independent Reserve already has licenses to operate in Australia, Singapore, and New Zealand. According to reports, Adrian Przelozny, co-founder and CEO of Independent Reserve, has stated that the company is seriously considering establishing a headquarters in Hong Kong due to the city’s favourable licensing policy.
“The problem with restricting something everyone wants is that they’ll do it anyway” @indepreserve’s Adrian Przelozny on hoping #MAS will revisit its #crypto ad ban pic.twitter.com/VnFJs38QPB
— Blockhead (@blockhead_co) October 21, 2022
Przelozny believes the Chinese government is testing a more lenient cryptocurrency regulatory environment in Hong Kong to gauge its impact on the local business climate. If the government perceives a positive feedback, there is a chance that they may extend it to the rest of China and loosen their current restrictions.
In addition, Przelozny remarked that if the Independent Reserve is satisfied with the regulatory climate, the final consideration would be the cost of establishing a company in Hong Kong and evaluating the potential return on investment.
This move comes on the heels of Hong Kong’s government announcing its intentions to transform the city into a cryptocurrency hub and encourage virtual asset entrepreneurs and investors to establish their businesses there.
In line with its goal of becoming Asia’s next cryptocurrency hub, the Hong Kong Securities and Futures Commission has launched a public consultation for a proposed licensing scheme for cryptocurrency exchange to solicit feedback from its residents on retail cryptocurrency trading. The licensing scheme is expected to go into effect in June 2023.
Over 80 virtual asset companies operating in Mainland China and other countries have reportedly expressed interest in setting up their businesses in Hong Kong following the government’s announcement.
Independent Reserve was established in 2013 and has since amassed over 250,000 clients from Australia, New Zealand, Singapore, and other international locations. The company reportedly acquired the domain name Bitcoin.com.au for $3 million to secure the brand and 100,000-strong customer list while preparing for a surge in retail interest following the global banking crisis.
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