The proximity of Hong Kong to China has always proven to be an advantage to the island. Even in terms of business, the fact that the Hong Kong economy enjoys a level of autonomy has made it an investor’s haven. With the surge of interest in cryptocurrencies, the island has become a hub of sorts for ICO especially after China and South Korea clamped down on the thriving method which startups have been taking advantage of to quickly raise funds in cryptocurrencies for businesses.
With the ban on mainland China and South Korea, many entrepreneurs and startups have moved to Hong Kong, the nearest haven for ICO operations. Others have moved as far away as Switzerland, another country favorably disposed towards crypto crowdfunding projects.
ICO thrives in Hong Kong despite having no form of regulations in place. This is because many have suggested self regulation as a means of not stifling initiatives and innovativeness. There seems to be a debate on what line of action countries need to take concerning ICO. Some have adopted the token as securities approach, some a wait-and-see while counties such as South Korea and China opted for the outright ban, which has seen the exodus of many startups from the mainland.
It is clear however that the Chinese government’s concern is the notion that cryptocurrencies adoption is liberty taken too far to the extent of minting your own money from home. A situation they are unwilling to accept. There are reports that the country is planning to create a national cryptocurrency which crypto enthusiasts are saying will not be as popular as the decentralized currencies they have known such as bitcoin. They said that will only be a centralized crypto created to keep track of who has what.
The situation is contrary to what is obtainable in Hong Kong where the crypto industry is not just thriving but has built a seeming code of conduct that has received unspoken acceptance from investors.