The hardline stance against cryptocurrencies and exchanges taken by the central Chinese government has had some negative impact on cryptocurrency markets in recent weeks. However, Chinese government regulation has not quelled interest in Blockchain technology solutions in the small island state of Hong Kong.
Hong Kong, known for its substantial banking and shipping industries, is seeking to make the transition to new domestic platforms for business and is hoping that Blockchain technology will be the tool to make that possible.
Government fostering, ICOs proliferating
The Hong Kong government is seeking to make the leap. Charles d’Haussy, the fintech lead at government economic agency InvestHK, said:
“Blockchain is a very high priority for us. There is hype, and there is the fast grab of money with ICOs in some cases. But what we are looking at building here in Hong Kong is an infrastructure for new businesses and existing businesses, to make sure the technology and innovations remain a key enabler for financial sector growth.”
Meanwhile, ICOs in the country are cropping up (for example Dragon Corp., who hopes to raise $500 mln from its upcoming ICO), as the city presents a means for companies to have a hub in east Asia without the crippling regulations that China just imposed.
However, the government is not simply opening the doors completely. The local Securities and Futures Department recently issued a statement warning consumers to do due diligence before investing, and warned owners that some ICOs may be considered securities.