Why Hong Kong Will Be a Leading Digital Asset Trading Centre in Asia



Alex Yuen   Sep 27, 2020 19:122 Min Read

Hong Kong will be a leading Digital Asset Trading Centre in Asia. What precisely the Hong Kong Government and the Securities and Future Commission (SFC) have done for this period.

The Hong Kong Monetary Authority (HKMA) has granted eight virtual bank licenses and has been offering service since 2020. A breakthrough in the account opening procedure is customers only shoot a photo through their mobile and send it to the bank. The financial world highly appraises the banking and financial control system in Hong Kong. Know Your Customer (KYC) procedure in the Hong Kong Banking system has been criticized as an “old school method” and no flexibility in dealing with customers. Criticism does not mean losing control, but it should think more different ways of using technology in offering more competitive service to potential customers.  Potential a new client base will be the Greater Bay Area with 100 million population customers.

SFC already pointed out Bitcoin is defined as a “commodity”, and it is legal to buy and sell Bitcoin in HK. However, in China, it is still vague to depict the Bitcoin legal status in monetary and financial position. Although it had cases in Shanghai by the court to point out that Bitcoin is an asset, no future explanation to define its legal status. Therefore, Bitcoin has its legal situation; it is still a question mark? In the US, Bitcoin has been recently described as “currency” in Washington state court.  

In May, SFC has approved the first Digital Asset Management Company in HK.  Regulated digital asset funds will launch out in the market soon.  “Regulated” means investors are under SFC protection. By law, the asset management company submits a monthly financial report to SFC for supervision.

In August, SFC granted two security token (STO) exchange licenses. BC Group (stock code 863 HK) is one of them, and its stock price has been increased nearly a double for the past six months. It has reflected investors are very positive on a technology company in the digital asset business. The company is now offering education on what is digital assets and their risks to customers through a commercial radio program.

With STO, it will provide more and more liquidity channels for SME or estate building projects.  Singapore has a regulated STO exchange as well, but the feedback is not very good, and so far not many companies are traded there.

In 2019 SFC report showed that Asset Under Manage (AUM) under HK was HK$$28,769 Billion, which highlighted a 20% increase in AUM and a 15% increased in domicile SFC authorized funds.  It shows a huge potential of investors and fund managers are ready.

With full support by regulated banking services, asset management companies and security token exchange platforms, HK will be a leading Digital Asset Trading Centre in Asia.

Alex Yuen, Director

Asia Digital Asset Financial Ltd.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post


Cryptosx 數字資產交易所今天隆重確認,通過與威士忌獨立投資私募基金組合公司 (“HCS”) 合作,全球首支威士忌基金證券代幣即將在交易所上架交易。這將是全球第一隻在合規許可下並符合Securitize DS protocol 協議標準,同時支持中心化和非中心化交易的證券代幣交易,在創新投融資的同時,預期將激發市場流動性和價值空間的增長。 Cryptosx CEO, 譚百賢強調, “我們與HCS團隊日夜工作了將近6個月,同時與全球頂尖的投資人團隊、律師法律團隊、會計師核數師團隊和證券化代幣團隊一起,對各類商業模型和合規條例進行了專業的審核。因此,我們確信,HCS 證券代幣將成功在我們交易所上市交易”,“這將是一個里程碑式典範,為高端酒類資產實現證券代幣化,並讓酒類資產吸引更多投資者成為現實;不僅僅是在疫情影響下激發數字貨幣市場與傳統金融的活力,也為資產數字化創造了巨大的成長環境和空間。” 傳統金融投資機構和市場已經關注到,Cryptosx 作為全合規運營並有政府許可的數字資產交易所,它專注於資產的數字化、證券化交易的業績超越傳統金融投資回報,管理的資產包括股權權益、商品資產、不動產、古董資產、上市公司股票等等。 威士忌資產的高投資回報 威士忌近年的投資回報增幅證明,它吸引了全球投資者的關注,投資人數量在高位倍數翻翻。而當前,有限流通的優質威士忌桶酒在拍賣市埸被重複交易,價格巳經突破幾年來市埸價格中位線以上。根據 Rare Whisky 101 指數,威士忌價格將在新冠疫情后繼續攀升,更為重要的是將由於生產端的恢復問題導致供需失衡,價格更將持續攀升並穩定在高位水平。 HCS 於2020年1月成功完成了第一輪的私募融資並且馬上投放配置了幾百桶單一單麥芽蘇格蘭威士忌資產。這些基礎資產作為投資組合,桶酒都存放在英國的保稅倉庫和專業的釀酒廠,在保證合理投入成本同時得以期待更穩定,長期回報。基金酒桶全部由威士忌專家蔡昊先生精選,蔡昊先生於2013年成為第一批華人獲得蘇格蘭威士忌協會頒發 “The Keepers of the Quaich” 之殊榮。 桶裝蘇格蘭威士忌酒投資門檻現在巳經變得非常高。在2020年6月,蘇富比拍賣單桶 1995

Cryptosx News STO News
Close Bitnami banner