Binance founder: Hong Kong can be crypto hub if rules move fast

Binance founder Zhao Changpeng said Hong Kong could become a major hub for virtual assets, but called on regulators to act quickly to unlock its potential.

Zhao, who stepped down as Binance CEO in 2023, told the South China Morning Post that the city’s government has shown a clear willingness to support Web3 development.

Hong Kong currently allows retail trading of only four cryptocurrencies—Bitcoin, ether, Avalanche, and Chainlink—under rules set by the Securities and Futures Commission.

These restrictions have been in place since August 2023, requiring tokens to be listed on at least two major investible indices, with one index coming from an independent provider rooted in traditional finance.

Zhao said this approach remains conservative and pointed to Japan, where exchanges have more freedom in selecting tokens.

Binance has not applied for a license in Hong Kong.

Authorities plan to announce new digital asset regulations by year-end, as part of ongoing efforts to grow the sector.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Hong Kong’s crypto stance has evolved dramatically from skeptic to cautious embracer

Hong Kong’s regulatory journey reveals how quickly government attitudes toward digital assets can shift when economic opportunities become apparent.

Just a decade ago, the Hong Kong Monetary Authority warned the public about Bitcoin risks, categorizing it as a “virtual commodity” rather than legal tender and highlighting fraud concerns2.

Fast-forward to 2019, and the same HKMA launched “eTradeConnect,” a large-scale blockchain platform involving 12 major banks to enhance trade finance for SMEs3.

The transformation accelerated in August 2023 when the Securities and Futures Commission legalized retail cryptocurrency trading, though under strict conditions requiring tokens to be included in at least two major investible indices1.

This regulatory evolution from outright warnings to controlled embrace demonstrates how jurisdictions can pivot their digital asset strategies when faced with competitive pressure from other financial hubs.