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Lawmaker Johnny NG has responded to Vitalik Buterin’s comments about Hong Kong’s recent pivot towards cryptocurrency. 

The Ethereum founder had expressed considerable reservations and urged caution for crypto businesses considering Hong Kong as a base for their crypto operations. 

Buterin Flags Concerns 

Hong Kong has positioned itself as a potential crypto hub by adopting a new regulatory framework. However, despite the city warming towards crypto in a big way, the industry largely remained skeptical. The skepticism was on display when Ethereum founder Vitalik Buterin expressed his concerns and cautioned crypto firms looking at establishing a base in Hong Kong.

Recently, Hong Kong issued inaugural licenses for retail crypto trading. These were issued to HashKey Exchange and OSL. The endorsements came after the city’s Securities and Futures Commission (SFC) began accepting licensing applications in June. However, China’s stance on crypto and the political turmoil in Hong Kong in 2019 means that many have questioned the durability of this newfound acceptance of crypto. China responded to the political uncertainty in Hong Kong with a comprehensive national security law. 

This is the reason why Buterin urged crypto firms to be cautious when setting up a base in Hong Kong, expressing concerns about the stability of its crypto embrace. 

“I don’t understand Hong Kong well. I understand even less the complicated interaction between Hong Kong and the mainland lately. Obviously, it’s very friendly now. But the big question that I’m asking and that I think anyone is asking is: how stable is the level of friendliness?”

Buterin added that Hong Kong needed to ensure stability in its approach. If it did, it could be well placed to become a crypto hub if it could assure users of consistency regarding friendliness towards crypto. Others shared Buterin’s concerns, with the founder of Crypto Yield Capital, Jake Boaz, stating, 

“The overarching crackdown on crypto in mainland China casts a shadow of uncertainty. Given this backdrop, it’s imperative for crypto firms in Hong Kong to establish contingency plans.”

HK Lawmaker
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Author: Amara Khatri

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