Thai Opposition Party Offers Election Crypto Sweetener

Hong Kong’s Largest Bank in Lackluster Crypto EmbraceFor all of its pro-crypto initiatives Hong Kong has been struggling with banking crypto companies. A recent report from the Hong Kong Economic Journal cited Lin Yansheng, Director of Commercial Banking at Hang Seng Bank, Hong Kong’s largest local bank, in outlining that the bank will accommodate crypto but that support is conditional.Photo by Florian Wehde on UnsplashCrypto in a high rates environmentYansheng shared his insights on interest rates, stating that he believes that interest rates will rise but reassures that any increase will be temporary in nature.The Commercial Banking Director acknowledged that Hong Kong’s current high-interest rates, in contrast to those of mainland China and neighboring regions, have caused a slowdown in the overall demand for bank loans. He predicts that loan growth will face pressure this year. However, he also offers a glimmer of hope, stating that a reduction in interest rates may not be far off. He suggests that next year’s expected interest rate cuts could lead to an improvement in loan growth.Data published recently by the Hong Kong Monetary Authority (HKMA) shows that annualized loan growth has been negative since May. It currently stands at -1.1%. Yansheng explained that as borrowing rates decrease in mainland China, Hong Kong’s banking industry is experiencing a downturn in loan growth. The high Hong Kong dollar interbank offered rate (HIBOR) currently limits the volume of corporate borrowing.The rising concerns over interest rates have prompted Hang Seng Bank to acknowledge the importance of cryptocurrencies.Unconvincing crypto embraceThe bank recently outlined the regulatory framework for virtual asset businesses seeking to operate within its purview. To open standard banking accounts, these businesses must obtain an Approval-in-Principle (AIP) license from the Securities Regulatory Commission (SRC), as per the bank’s announcement.The first issue is that obtaining an AIP license has proven to be incredibly difficult. Currently, only OSL and HashKey, two virtual asset trading platforms, have managed to obtain the required clearance. Hang Seng Bank acknowledges that it hasn’t received many inquiries about crypto-banking, attributing it to that challenging process of obtaining AIP certification. Meeting the demanding requirements for such permission poses a significant hurdle for most businesses.Getting beyond this obstacle, Yansheng clarified that even then crypto companies will only be able to obtain a “simple” bank account. He didn’t clarify what services would be excluded but Hang Seng’s embrace of crypto-related business sounds very much like it’s lacking in conviction.Both the China Securities Regulatory Commission and the Hong Kong Monetary Authority have conducted roundtable meetings to address the difficulties faced by virtual asset businesses. Yansheng reiterated Hang Seng’s commitment to complying with the regulators’ instructions and accommodating these companies. However, it’s clear that difficulties remain.Last month, it was reported that Hang Seng Investment Management Co., a wholly-owned subsidiary of Hang Seng Bank and the largest exchange-traded fund (ETF) manager in Hong Kong, was looking to add digital assets to its product line.

Study Places Hong Kong as Leader in Crypto ReadinessHong Kong, according to a recent study conducted by Forex Suggest, has emerged as the leading jurisdiction worldwide in terms of its readiness for cryptocurrencies. The study evaluated various factors such as the number of blockchain startups per 100,000 people and the density of crypto ATMs in relation to the population.Photo by Traxer on UnsplashZero capital gains taxThe attractiveness of Hong Kong for investors in the crypto space stems from its advantageous tax policies. The study noted that Hong Kong does not levy capital gains taxes on cryptocurrency, making it an appealing destination for crypto enthusiasts. The United States and Switzerland secured the second and third positions, respectively, in the rankings of the most crypto-ready countries.In recent times, Hong Kong has actively embraced investments from digital asset companies and is poised to implement new regulations for the industry. Effective from June 1, the city’s new rules aim to establish Hong Kong as a global hub for digital assets. These regulations permit licensed cryptocurrency trading platforms to offer services to retail investors while incorporating measures to safeguard individual traders.Global crypto firms are gearing up for that new licensing approach, carving out separate corporate entities in order to meet the regulatory requirements which the Hong Kong regulator, the Securities Futures Commission (SFC), has set. Another Hong Kong regulator, the Hong Kong Monetary Authority (HKMA), is also opening up to embrace digital asset innovation through a pilot project implicating the tokenization of real world assets.Regarding the number of blockchain startups, Hong Kong boasts three startups per 100,000 individuals, securing the second position globally. Topping the list is Switzerland, with an impressive count of 12.9 blockchain startups per 100,000 residents, amounting to a total of 1,128.The study also highlighted that countries such as Hong Kong, Switzerland, Panama, Portugal, Germany, Malaysia, and Turkey impose the lowest taxes on cryptocurrencies. These nations exempt individuals from capital gains taxes on profits derived from cryptocurrency trading.Crypto ATM proliferationWhen considering the prevalence of crypto ATMs, Hong Kong ranks third globally, with two ATMs per 100,000 people, totaling 149 ATMs. The United States takes the top spot with nearly 34,000 crypto ATMs, but when normalized to the population, it has 10.1 ATMs per 100,000 individuals.Regressive measures in USIn contrast to Hong Kong’s favorable environment, regulators in the United States have intensified their efforts to tighten regulations on cryptocurrency exchanges, leading many within the industry to advocate for clearer guidelines. Consequently, several exchanges are exploring jurisdictions that offer more favorable conditions.Forex Suggest emphasized that the report’s findings were based on extensive data analysis, taking into account factors such as tax regulations, legislation, the presence of blockchain startups, and the level of interest in cryptocurrencies. Each jurisdiction received a normalized score out of 10 for each factor, and the overall rankings were determined by averaging these scores.Hong Kong’s position as the most crypto-ready jurisdiction in the world showcases its commitment to fostering innovation and becoming a global leader in the digital asset space. With its advantageous tax policies, growing number of blockchain startups, and forthcoming regulations, the autonomous Chinese territory is solidifying its position as an attractive destination for businesses and investors in the cryptocurrency space.

Boyaa Interactive Greenlights $5 Million Investment in Bitcoin and EtherBoyaa Interactive International Limited, a Hong Kong-based investment holding company with a track record in developing online chess, card, and puzzle games, has made a strategic move with a proposed investment in digital assets.The company’s board of directors has recently given the green light for the allocation of a substantial budget amounting to $5 million for the purpose of acquiring cryptocurrencies.Photo by Traxer on UnsplashWeb3 positioningThe Chinese company, incorporated in the Cayman Islands, announced the move as Boyaa Interactive seeks to position itself for a dynamic shift into the realm of Web3.While the exact allocation breakdown was not detailed in the disclosure, the company outlined that its primary focus would be on procuring established cryptocurrencies, specifically Bitcoin (BTC) and Ether (ETH). Boyaa Interactive intends to execute these purchases through regulated and licensed trading platforms within the upcoming year.In a letter addressed to its shareholders and potential investors, the company emphasized the strategic nature of this decision:“The purchases of cryptocurrencies are for the consideration of the Group’s future business layout into the field of Web3. The Board is of the view that the purchases of cryptocurrencies (including mainly Bitcoin (BTC) and Ether (ETH)) by the Group are in the interests of the Company and its shareholders as a whole.”A challenging recent historyThe move towards cryptocurrencies is a significant pivot for Boyaa Interactive, a company that has navigated a series of challenges in recent years. In 2018, the company’s Chairman and CEO, Zhang Wei, faced legal troubles and was sentenced to 12 months in prison for bribery, which led to his resignation from all executive and management positions.Subsequent restructuring saw Dai Zhikang stepping in as the new Chairman of the board, while Tao Ying assumed the role of an Executive Director and Chairman of the Nomination Committee.Financially, Boyaa Interactive experienced a tough period marked by revenue contraction. The company reported revenue declines over the course of 2018, largely attributed to a governmental crackdown on online poker applications and the discontinuation of poker as a recognized competitive sport. Regulatory risks stemming from the Chinese government’s stance on Texas Hold’em poker games resulted in a substantial falloff in revenue by comparison with past performance.Funds seizureThese challenges cascaded into the following year, when the company encountered a substantial freeze on its funds. In 2019, a Chinese court ordered the freezing of RMB 635 million (approximately $88.6 million) belonging to Boyaa Interactive, following the legal actions against Zhang Wei and his associated entities.One of the company’s subsidiaries, Boyaa Shenzhen, was found guilty of offering bribes. The company responded by clarifying that the frozen funds could potentially be confiscated if linked to Zhang’s misconduct. However, Boyaa Interactive also stressed that it had not been directly implicated in the case, thus mitigating the legal risks to the broader organization.Amidst these adversities, Boyaa Interactive’s decision to invest in cryptocurrencies demonstrates its openness to adapting to changing technological landscapes and exploring new opportunities in Web3.