HSBC Expands Offering to Include Crypto ETFs in Hong Kong

Politician Responds as Buterin Questions Hong Kong’s Crypto CredentialsIn a measured response on Friday, Johnny Ng, a member of Hong Kong’s Legislative Council, addressed the comments made by Ethereum co-founder Vitalik Buterin concerning Hong Kong’s future stance on cryptocurrencies.Photo by Florian Wehde on UnsplashInvitation extendedNg extended an invitation to Buterin to visit Hong Kong, allowing him to gain a more nuanced understanding of the region’s dynamics. Ng also expressed his intent to collaborate with relevant institutions and enterprises to provide Buterin with insights into Hong Kong’s current situation.Vitalik Buterin had voiced his concerns at the Web3 Transition Summit in Singapore on Thursday. Buterin stated:“If any crypto project wants to make Hong Kong their home, they would want to have some confidence — not just that it’s friendly now but that it will continue to be friendly years from now when all kinds of unknown, regulatory and political and other kinds of events are going to happen.”He acknowledged that he did not possess an in-depth understanding of Hong Kong’s intricacies, particularly in light of recent developments in its relationship with mainland China. Buterin emphasized the need for crypto projects to have confidence not only in Hong Kong’s current crypto-friendliness but also in its ability to maintain this stance amidst unforeseen regulatory, political, and other events.In response to Buterin’s remarks, Ng reassured him that Hong Kong’s crypto-related policies were not prone to sudden changes. He highlighted that these policies had been formulated with broad social consensus and underwent comprehensive procedural assessments. Ng asserted: “Therefore, I can tell Mr. Vitalik that Hong Kong’s policies are very stable.”He further elaborated on Hong Kong’s legislative process, emphasizing the stages of government policy drafting, public consultation, discussions within multiple committees of the Legislative Council, and the General Assembly’s review.Best-prepared crypto jurisdictionIn a separate development, Hong Kong has maintained its position as the best-prepared jurisdiction for widespread cryptocurrency adoption in 2023, according to a recently published study. The Chinese autonomous territory secured the top rank for the second consecutive year.This recognition is based on a crypto readiness score (CRS) that takes into account factors such as the presence of crypto ATMs, the regulatory environment, accessibility, and legality.In contrast, the United States slipped to third place, experiencing a 6.5% drop in its CRS score from the previous year. Switzerland emerged as the second-best-prepared jurisdiction, with its CRS score surging by over 9%.The Dutch demonstrated the highest per capita interest in crypto, while Hong Kong stood out for having the most crypto ATMs per square foot due to its smaller landmass. Within the United States, New York became the most crypto-ready state, boasting a CRS of 9.80, owing to a robust legislative environment and a thriving crypto and blockchain industry.Chainalysis crypto adoption reportMeanwhile, India emerged as the global leader in crypto adoption in 2023, according to a recently compiled Chainalysis report. The report also highlighted other lower middle-income nations, such as Nigeria and Thailand, ranking prominently in crypto adoption. India’s crypto market has surged to become the second-largest globally by raw estimated transaction volume.Johnny Ng’s response to Vitalik Buterin’s comments is indicative of the measured and informed approach of Hong Kong’s leadership regarding cryptocurrencies. With a stable and consensus-driven regulatory framework, Hong Kong remains a key player in the evolving landscape of digital currencies.

Chinese Prosecutors Issue Warning on NFTsIn recent days, China’s top procuratorial agency, the Supreme People’s Procuratorate of China, issued a warning alongside some guidelines on non-fungible tokens (NFTs).The Supreme People’s Procuratorate is the highest office in China charged with the mandate of upholding legal integrity, safeguarding citizens’ rights, and where necessary, conducting criminal investigations. In a statement published on Monday, the agency set out an advisory, together with additional recommendations, pertaining to NFTs.Photo by Markus Winkler on PexelsNFT status in ChinaWhile all and sundry are aware of a multi-year crack-down by the Chinese authorities on crypto in recent times, exemplified by a ban on crypto trading and the operation of crypto mining facilities within the country’s borders, the status of NFTs has been discussed to a much lesser degree.NFTs remain legal within the country. When the crypto trading ban came into play in 2021, much of the local industry connected with that trading activity disappeared. However, in its place, a newly emergent trend came to the fore in the form of NFTs. With cryptocurrencies perceived as being high risk and sanctioned by the authorities, attention turned to NFTs and there has been a surge of adoption of the digital collectibles within China as a consequence.NFT risksThe procuratorial agency highlighted a number of attributes as well as risks in relation to NFTs in the report that it published. The agency finds the issue of ownership of NFTs as a troublesome one. It cites the fact that NFTs can be replicated and distributed at will on this basis as being particularly problematic. The legitimacy of the right source of the work itself is the decisive factor for the healthy and orderly development of digital works NFT transactions,” it states.It appears that the agency, like many in traditional professional circles before them, have a difficulty recognizing the model of asset ownership that NFTs incorporate. That ownership is not defined by civil law or in accordance with centralized systems but by simply the possession of the requisite private key pertaining to a given NFT within a decentralized system.Blockchain, not cryptoThe agency acknowledged that NFTs do present a novel application of blockchain technology. This is not surprising as while there might be an ongoing clampdown on decentralized cryptocurrencies in China, officials at a national level and in numerous instances within regional administrations, are demonstrating a strategy of leveraging blockchain technology for the betterment of the Chinese economy in the future.Public prosecutor Wang Xia-fen, one of the authors of the report, stated: “It’s widely recognized that digital collectibles have the potential to protect intellectual property rights, boost content creation and enrich the digital economy.” Wang encouraged public prosecutors to “find the distinction between real innovation and criminal activities” where NFTs are concerned.The upshot of its report though, is that the procuratorial agency is uncomfortable with the similarity of many of the attributes of NFTs when compared with decentralized cryptocurrencies. It issued a warning on that basis, emphasizing a need for risk assessment to be carried out and further consideration of the legal risks that are implicated.

WEMIX Listed on Crypto Exchange CoinDCX, Strengthening Presence in IndiaWEMIX, the utility coin of blockchain game platform WEMIX Play, has now been listed on India-based cryptocurrency exchange CoinDCX, according to a press release. WEMIX Play is operated by South Korean gaming company Wemade.Photo by Naveed Ahmed on UnsplashWEMIX/USDT & WEMIX/INREstablished in 2018, CoinDCX earned unicorn status two years ago, becoming the first Indian crypto exchange to accomplish this feat. With a current valuation of approximately $2.5 billion, CoinDCX offers trading support for over 80 cryptocurrencies and provides decentralized financial (DeFi) services to a customer base of 15 million global users. CoinDCX users can trade WEMIX against USDT and INR, where USDT stands for a stablecoin issued by crypto giant Tether and INR for Indian Rupee.WEMIX made its debut on the Indian market in February through its listing on Bitbns, another cryptocurrency exchange. The token’s addition to another trading platform in India indicates the growing presence of the WEMIX ecosystem in the region.India’s Web3 landscapeIndia is a prominent market for non-fungible tokens (NFTs) and blockchain technology. As of April, investments in the Indian Web3 ecosystem had reached $1.3 billion. The country also boasts the world’s third-largest talent pool for Web3 development. Currently, more than 450 Indian startups are making their mark on the global stage, demonstrating expertise in DeFi services, gaming, NFTs, and metaverses.Looking ahead, WEMIX aims to further expand its reach by pursuing listings on additional crypto exchanges. This strategy will enable gamers worldwide to trade the WEMIX token with their respective fiat currencies.