With the Chinese ban on crypto, many OTC stores have been set up in Hong Kong. The region has actively participated in creating innovative crypto infrastructures and platforms like Crypto.com and FTX exchange.
Several successful crypto exchanges started out in Hong Kong, but that is not the only thing that can be seen in this region, at the moment. Daily, new physical over-the-counter crypto stores are being set up in Hong Kong, catering to the needs of both residents and tourists. Chinese tourists make up a large percent of the users since the ban of crypto activities in their home country.
According to the Cointelegraph, Henri Arslanian, head of the crypto at PwC and former chairman of the Fintech Association of Hong Kong, told them that there are numerous traditional OTC crypto brokers in Hong Kong plying their activities within the region. “They are literally brick and mortar stores for the retail public,” he said.
Cointelegraph also noted that an anonymous source alerted them that while traveling to Hong Kong, he noticed an influx of OTC crypto exchanges, with some of them offering crypto ATMs to users.
These OTC exchanges tend to center themselves around tourist attractions to entice Chinese residents to use their services.
No one can say for sure if the government will create regulations to prevent OTC exchanges from working in Hong Kong, and probably restrict crypto investment to only institutional investors. The uncertainty has led to wild speculations concerning the legality of these physical stores, and if they will be able to get licenses from the government.
