With U.S. regulators continuing to ramp up their scrutiny of crypto, startups and founders in the space are looking overseas to find friendlier climat

Global crypto firms turn to Hong Kong for refuge — and opportunity

submited by

Style Pass

2024-05-11 20:30:05

With U.S. regulators continuing to ramp up their scrutiny of crypto, startups and founders in the space are looking overseas to find friendlier climates to support their growth.

One such destination is Hong Kong, which, seeking to restore its status as a financial hub, is banking on favorable crypto regulations to draw a fresh raft of entrepreneurs, technologists and investors. So far, its strategy seems to be working.

In mid-April, Hong Kong’s annual web3 festival drew in over 50,000 attendees. There were noticeably more non-Chinese attendees compared to last year, when the event felt like a gathering of crypto refugees fleeing mainland China’s restrictive policy. At this year’s edition, buttoned-up officials from the city listened attentively to scruffily dressed founders battling jetlag. While she did not make it to the event in person, Cathie Wood, the billionaire founder of Ark Invest, delivered a speech via video. And Vitalik Buterin, the nomadic founder of Ethereum, made a last-minute appearance.

It evoked a sense of déjà vu: In the industry’s infancy, Hong Kong was a major hub for crypto firms run by foreign entrepreneurs, including the likes of FTX, Crypto.com and BitMex. Like other jurisdictions around the world, the city clamped down on crypto activities to safeguard investor interest as market volatility was spiraling out of control.