Stablecoin issuer Circle has expressed its heightened interest in establishing offices and workforce in Hong Kong. The world’s second largest Stabecoin issuer is waiting for the new laws in Hong Kong to roll out in order to comply with licensing requirements and regulatory framework.
According to local media reports, major international Stablecoin issuers have shown interest in the Hong Kong government’s plan to have the Stablecoin issuer system reviewed by the Legislative Council before the year ends.
Jeremy Allaire, co-founder and CEO of Circle said that Hong Kong is a significant market for USDC, and the company plans to expand its workforce and open offices there. It awaits the implementation of Hong Kong’s new stablecoin laws. Once the platform is familiar with the rules, Circle will think about reapplying for a license.
The vice president of Circle Asia-Pacific, Chen Qinqi, also outlined a number of benefits of stablecoin development in Hong Kong. These include being the biggest capital market in the Asia-Pacific area, having the ability to settle USD on the same day, and being close to the mainland market. Chen thinks Hong Kong could develop into a global center for stablecoins and expects a sizable market for stablecoins based in Hong Kong.
Circle’s Signs New Partnership In Hong Kong
Circle’s interest in the Hong Kong territory comes as the city has tried to re-establish itself as a crypto hub. The announcement also follows previous measures as Circle has already marked a presence in the market with various MOU’s and partnerships.
Previously, in order to investigate a possible partnership in creating blockchain-based customer loyalty solutions for Hong Kong retailers, Circle and HKT, a leader in technology, media, and telecommunication, signed a Memorandum of Understanding (MOU).
Circle’s New Remarks Come As Hong Kong Dives To Be Next Crypto Hub
Hong Kong has revamped itself as a crypto-friendly state now. These new developments are an aftermath of a dicey period where the state of crypto was being questioned by many in the region. Following a five-month inspection period that had cast doubt on the likelihood of additional approvals, Hong Kong authorities now anticipate licensing more digital-asset exchanges by the end of 2024.
Speaking at the annual Fintech Week event, Eric Yip, executive director for intermediaries at the Securities and Futures Commission in HK, stated that a finalized list of the platforms moving from a provisional permit to a fully licensed status will be released by the end of the year.
Hong Kong Jumps Global Crypto Adoption Index
Hong Kong has also climbed the list of global crypto adoption. According to recent research, mainland Chinese use digital currencies to preserve wealth despite the government’s harsh ban, while Hong Kong has witnessed the largest increase in cryptocurrency activity in East Asia as the city works to become a virtual-asset hub.
According to this year’s Global Cryptocurrency Adoption Index rankings released, the city moved up from No. 47 last year to 30th place. According to the report, Hong Kong experienced the biggest increase in cryptocurrency transaction value in East Asia, with a rise of 85.6% year over year.