Digital-asset exchange Huobi intends to extend its operations in Hong Kong, anticipating that a lifting of the restriction for virtual currency in mainland China and, as a result, better access to customers in that country would follow the city’s recent pro-crypto tilt.
Sun is a little optimistic about the Chinese markets
In an interview that took place on Friday with Bloomberg TV, Justin Sun, an advisor at Huobi who is responsible for setting strategy for the company, said that Hong Kong is regarded as one of the trial zones for crypto growth in China. According to him, this is one of the most significant reasons for to growth of Hong Kong.
He also said that Hong Kong, Malaysia, and the Caribbean are Huobi’s most important commercial areas. According to a November report from Bloomberg News, Sun invested over one billion dollars to acquire approximately sixty percent of Huobi.
China now eyeing crypto
In contrast to Singapore, which has tightened its regulations in the aftermath of a crypto market slump and high-profile failures like the collapse of the FTX exchange, Hong Kong has said that it wants to become a center for digital assets and has changed its policies accordingly.
Although Beijing is keeping a close eye on the developments taking place in Hong Kong, the idea that China would relax its ban on almost all things cryptocurrency, which has been in place for more than a year, is still a very divisive proposition.
After dipping lower in the wake of the TerraUSD stablecoin crisis in May and again during the FTX implosion in the latter half of last year, Sun, who is also the founder of the Tron blockchain, has stated that additional steps will be taken to ensure that Tron’s stablecoin USDD remains close to its peg to the US dollar.