Hong Kong Needs Broader Crypto Offerings To Rival US And UAE, CZ Warns

Hong Kong should widen the range of cryptocurrencies available on licensed exchanges if it wants to compete with global hubs such as the US and UAE, Binance founder Changpeng Zhao has said.

Zhao, widely known as CZ, told the South China Morning Post on Friday that the city has a “very clear attitude towards embracing Web3” and praised the government for its ability to act quickly.

He added that the US and UAE had not done anything “magical” beyond Hong Kong’s reach.

At present, Hong Kong’s retail traders can only buy and sell four cryptocurrencies on licensed platforms. These are Bitcoin, Ether, Avalanche and Chainlink.

Exclusive | Hong Kong can rival US, UAE as a crypto hub, Binance founder CZ says https://t.co/kGtcWhrQ60

These limits were introduced by the Securities and Futures Commission when it legalized retail trading in Aug. 2023. Tokens must be included in at least two major investible indices, one of which must come from an independent provider rooted in traditional finance.

Zhao said the four tokens were “not enough” and pointed to Japan’s system, where exchanges have greater autonomy to decide what assets to list.

Hong Kong has 11 licensed virtual asset trading platforms, but Binance has not applied for approval. Zhao stepped down as Binance chief executive in late 2023 as part of a settlement with the US government, but continues to engage with regulators worldwide.

He said Hong Kong’s stance was “conservative” since authorities were keen to avoid mistakes.

Although no longer running Binance, Zhao described himself as a “backbench coach” who advises entrepreneurs and supports the development of the BNB Chain. The blockchain hosts more than 4,000 projects, though Zhao stressed he does not hold stakes in most of them.

He is, however, the largest owner of BNB tokens, controlling close to two-thirds of the circulating supply.

Meanwhile, Hong Kong is preparing to release a more detailed policy framework on digital assets by the end of the year. This will build on its first virtual asset policy, published in Oct. 2022, which set out broad goals to encourage growth in the sector.

The city’s push to establish itself as a hub has come at a time when global regulators are taking divergent approaches.

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