- Crypto community discusses rumors of Coinbase relocation;
- It’s unlikely their new home will be Hong Kong
- And the reason lies in the finer points of regulation
A Hong Kong official invited global crypto exchanges to register in their jurisdiction on Monday. He promised all-round help from the authorities, and even a listing on the stock market. In his tweet, the politician noted cryptocurrency exchange Coinbase, which was sued in the U.S. by the SEC.
But Hong Kong is not the best place for such a large company, believes Leo Wies, co-founder of the Bitcoin Association.
“The Hong Kong structure as it exists today is extremely unattractive (for Coinbase).. The market is small and untested, there are no partnerships with banks, and products are severely limited.”
Hong Kong on June 1 introduced cryptocurrency trading rules for retail investors under a new law on licensing cryptocurrency exchanges. However, there are important nuances there.
- First, the authorities limit the number of tokens available for trading. And Coinbase, for example, has over 300 coins listed.
- Local SEC rules require a minimum of 12 months between token launch and listing.</nbsp;
- The law bans stabelcoins, crypto derivatives, Earn or lending programs. Steaking services are also likely to be banned. Coinbase also has all of these tools and accounts for a large portion of their revenue.
- Airdrop and similar crypto activities are also banned.
The expert summarized that Asian markets in general are not suitable for international blockchain companies.