Crypto regulations are a competitive business in Asia, with places such as Hong Kong and Singapore vying to become Asia’s crypto hub and capture all the business associated with that status.

The challenge, though, lies in crafting a rulebook that balances investor protections with a welcomingness to businesses and new capital. And here, Hong Kong has an advantage over places like Japan or Korea, since its common-law framework for traditional finance has made its economy one of the most open and free in the world — a recent report from a Canadian think tank deemed Hong Kong the “freest economy” in the world, with Singapore just behind it in second place.