Hong Kong loses grip on Bitcoin

Despite its high standing on the global fintech scene and ripe demand for cryptocurrencies, bitcoin businesses have faded in the Hong Kong market. 

Issues with regulation are plaguing the bitcoin market in Hong Kong, with complex regulations proving difficult for businesses attempting to navigate the cryptocurrency ecosystem.

An increasing number of bitcoin businesses have closed their doors after the pressures of regulators made it too difficult to continue, according to experts.

In the absence of any clear regulation for cryptocurrency operators in the East Asian nation, entrepreneurs in the digital currency industry have been faced with the same red tape in Hong Kong that previously stifled the development industry in the UK and US.

A call for regulators to come together to draft new legislation that would see the reformation of bitcoin businesses and the reintegration of cryptocurrency competition, had gained steady support from entrepreneurs.

Bitcoin Association of Hong Kong president, Leo Weese, said it was not the role of regulators to protect cryptocurrency users, but that a move from regulators to clearly define rules would bring confidence to both entrepreneurs and investors.

“Regulators should be less risk averse, it is not their obligation to shield the Hong Kong economy from people losing money or other negative things,” he said.

Of the ten bitcoin ATMs introduced in Hong Kong three years ago, only four remain in what has become a less-than-favourable trading environment. 

 

 

Related Stories

The fintech sector in Vietnam raised a total of $129 million in 2016 with a spike in start-up deals last year, valued at $205 million, according to a Topica Founder Institute Report.
Vietnamese start-ups see 46% rise in investment
Value acquisitions amounting to $110 million are helping the Vietnamese start-up scene to expand,... Read More
H2 Ventures accelerator welcomes a fourth cohort
Seven technology start-ups are preparing to spend six months in the Sydney-based H2 Ventures... Read More
Yes Bank partners with Payjo for AI offering
Yes Bank partners with Payjo for AI offering
India’s Yes Bank and fintech platform Payjo are partnering to deliver the first based artificial... Read More
One million Citibank customers in the Asia-Pacific are active users of the bank’s voice biometrics authentication offering.
Citi hits 1 million biometrics banking clients
After launching in May 2016, Citibank is hitting one million users across its voice biometrics... Read More

Comments