The crypto market has grown significantly over the past few years, and since it is mostly contained on the internet, it favors the most technologically-advanced countries as they can boost the value of the crypto industry.
The most progressive countries around the world usually have a high rate of technology adoption, which is vital to the crypto market as it means people will more easily enter the industry, helping it thrive. One such country, recognized for its adoption of technology and primed for growth, is Hong Kong.
The South Asian country is expected to soon have an impact on the crypto market, especially since it has already established a structure to help crypto adoption. More businesses are now flocking to Hong Kong due to its support of digital assets such as Bitcoin (BTC) and Ethereum (ETH), with gamblers in the city now turning to Bitcoin casino games. Some of the reasons Hong Kong could become the next crypto hub in Asia include:
One of the main factors behind Hong Kong’s continued growth as a crypto hub has been the implementation of pro-crypto regulations from the government. The increase in crypto ATM installations, and the general startup culture in the city, have also contributed greatly in positioning Hong Kong to become one of the top nations when it comes to the crypto market. The general manager of Visa for Hong Kong and Macau, Maaike Steinebach, noted in a statement that the citizens of Hong Kong are not only interested in crypto as a trading asset, but also as a form of payment.
The country is also attracting businesses with its low taxes on cryptocurrency, which are not seen as legal tender in Hong Kong, but as a virtual commodity. As such, crypto trading is seen as a normal course of business, and treated as a normal source of income, which is subject to a profits tax in the country with a cap of 16.5%.
Since Hong Kong has established a crypto-friendly regime, crypto-based companies have started to flock to the Asian nation. One such company, which has already received a license to offer crypto services in Hong Kong, is Gate.io. The CEO of the firm, Han Link, celebrated the newly acquired license by saying:
“Establishing a custody business in Hong Kong is a global strategic milestone of Gate.io Group, not only because Hong Kong is the hub for many financial institutions and investors, but more importantly, the industry-leading regulatory regime of Hong Kong provides additional confidence for investors that place assets in Hippo FS’s custody”
The opinion that Hong Kong is the best positioned country for widespread crypto adoption is held by many, and is supported by a study conducted by Forex Suggest earlier this year. Called the “Worldwide Crypto Readiness Report“, the study — which considers factors such as number of crypto ATMs, regulations, taxes, and more — has given Hong Kong a crypto-readiness score of 8.6, which triumphs over the United States’ 7.7, and Switzerland’s 7.5 scores. As such, the country has not only become a place for crypto investments, but also a hub for playing Bitcoin casino games.