Hong Kong and Europe welcome crypto companies no longer desired in the USA

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Last Updated on 6 November 2023 by CryptoTips.eu

The banking crisis is now a month old and most Western governments hope it is also over. Except for a few regional American banks and a large German bank (Deutsche Bank), everyone seems to have their affairs in order. However, as predicted, the demise of Silvergate bank and Silicon Valley Bank has made sure American crypto companies need to look for other bankers.

Meanwhile over in Europe, bankers in both Switzerland and France are more than ready to welcome all those startups and crypto platforms. Over in Asia, Hong Kong in particular is ready to roll out the red carpet anew.

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Covid-19

US legislators and government members increasingly see crypto as a threat to the almighty dollar as digital coins become increasingly popular with young people. Because of this, it becomes increasingly difficult for crypto companies to gain entry into mainstream US businesses as bankers shy away from them.

Europe, with its Mica regulation for crypto and its eagerness to create its own Silicon Valley of tech startups, welcomes those small businesses trading digital currencies. In Asia, Hong Kong is once again fulfilling that role.

This is remarkable as the city used to be home to a great number of prominent crypto companies, including Crypto.com, BitMEX and the now bankrupt FTX. But increasing competition from Singapore, strict rules from China regarding Bitcoin trading and the tough response of the city to Covid-19 caused many companies to leave.

Smarter ways

Hong Kong also hopes to attract fresh money from China itself, where many investors have remained on the sidelines since the strict Covid-19 lockdowns.

“A lot of the Chinese capital is looking for smarter, safer ways to invest . . . being in Hong Kong naturally makes more sense than anywhere else,” said Henry Liu, chief executive of crypto exchange BTSE, which this month said it intended to apply for a licence in the city.

Some also think that the fact that China gives unspoken permission to Hong Kong to allow crypto to enter the city again will eventually lead to Beijing itself allowing Bitcoin again. The fact that the small but highly successful coin Conflux is allowed shows this as well.

US regulatory pressure therefore does not cause crypto companies to close, but it does make sure they are moving into new areas.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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