Experts agree that bitcoin (and cryptocurrencies as a whole) would allow Hong Kong to regain its economic freedom. In recent years, Chinese authoritarianism has increasingly taken over the administration of the perfume port. Economic freedom also suffers. Playing the decentralized finance card can help circumvent the almost absolute control exercised by China.
Regain economic freedom
Hong Kong has always been a benchmark in terms of economic freedom. For nearly 25 years, the think tank Heritage Foundation has always ranked it as the most economically free country. Hong Kong was then dethroned by Singapore in 2019 before disappearing completely from the annual ranking in 2021. Heritage Foundation justified this decision by China’s interference in the local economy. China, which, by the way, occupied the 107th place last year.
For each individual, startups, entrepreneurs, bitcoin and cryptocurrencies would allow them to regain complete economic freedom. An internet connection and a start-up fund are enough to create a portfolio. From there, everything is conceivable. In any case, it is certain that Bitcoin guarantees openness without any authority being able to impose its control. Crypto ensures freedom of investment, freedom of entrepreneurship, freedom of work, monetary freedom and protects property rights.
Hong Kong and bitcoin (BTC): ready for regulatory adoption?
Bitcoin and cryptocurrencies offer users around the world economic freedom, strengthening both the individual and the nation. And as the adoption of digital assets becomes more democratic, the world is likely to see a continuous rise in this level of freedom. In 2022, Hong Kong is listed among the countries qualified as “ crypto-ready ». The country has also announced a plan for the regulation of cryptos on its territory. It sets itself the goal of becoming a hub for this booming sector. And this, while containing the risks.
The Hong Kong Monetary Authority is considering stable coins that can be used as a means of payment. Regulators are also addressing the issue of the security of the crypto sector. They want to secure investors in addition to moving towards increased surveillance of an industry marked by volatility, scams and money laundering.
Exchanges get their license
Obviously, Hong Kong has already begun the conquest of the cryptosphere. Mid-August, Hippo Financial Services of Gate.io obtained a TCSP (Trust or Company Service Provider) license. And this, in order to be able to offer virtual asset custody services in Hong Kong. This license is required for any entity that carries out or wishes to carry out a trust activity in the country.
Gate.io it has, among other things, a cryptocurrency exchange, a blockchain, a decentralized financial platform. Tom Yang, group executive vice president says: “ Obtaining the TCSP license in Hong Kong allows us to deepen our relationship with global crypto investors as an industry leader. Then we will set up localized operations to bring our products and services to Hong Kong users ».
Bitcoin and cryptocurrencies can help to set up better economic operations in countries like Hong Kong where economic freedom is less. Crypto is clearly a technology that makes it possible to create a more free and liberal financial system. Certainly, digital assets are not going to directly improve all the factors of economic freedom. But already, this technology is paving the way for a global network.
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I stumble into the cryptosphere by chance and attend the
birth of a new era, that of the DeFi. It’s all about freedom
economic, transparency and opportunities accessible to all. Here’s a
a universe that deserves to be known.