Circle CEO Allaire Says He's Closely Watching Hong Kong's Cryptocurrency Policy

Circle's CEO says Asia is a huge area of focus.

Jeremy Allaire, co-founder and chief executive of stablecoin issuer Circle, said his firm has been closely monitoring regulatory developments in Hong Kong.

Authorities in the former British colony recently allowed investors to trade cryptocurrencies under the new regime because of their "fundamental value."

Asia is a "huge area of focus"

In a recent interview with Bloomberg, Allaire noted Hong Kong’s efforts to establish itself as a “very important hub for digital markets and stablecoins.” As such, Circle is "watching this very closely," he added.

The executive sees Asia as an important region for the industry. To recall, Circle received regulatory approval from the Monetary Authority of Singapore (MAS) last November. The license enables the company to offer digital payment token products and conduct cross-border and local transactions in the city-state.

Hong Kong’s governing body has recently taken a pro-crypto stance, introducing a regulatory framework for the industry earlier this month. Under the new rules, digital asset providers can offer services to retail clients, provided there is a possible investment risk disclaimer.

Some believe the positive attitude in Hong Kong could be a sign that China may be starting to take an interest in the industry. The government of the world's most populous country banned all cryptocurrency-related activity within its borders in 2021.

Additionally, subsidiaries of some of the largest Chinese banking institutions, including Bank of Communications, Bank of China, and Shanghai Pudong Development Bank, have also allegedly backed the Hong Kong-based cryptocurrency firm.

"What's happening in Hong Kong may ultimately mirror how those markets are developing in Greater China," Allaire concluded.

Jeremy Allaire, via CNBC

Hong Kong says yes to crypto ETFs

In addition to enforcing cryptocurrency rules, Hong Kong has recently joined the cryptocurrency ETF bandwagon. Earlier this week, the country’s largest bank, The Hong Kong and Shanghai Banking Corporation (HSBC), allowed customers to buy and sell bitcoin and ethereum exchange-traded funds.

Approved products include CSOP Bitcoin Futures ETF, CSOP Ethereum Futures and Samsung Bitcoin Futures Active ETF.

Additionally, the bank has launched an educational program called the “Virtual Asset Investor Education Center,” which aims to educate investors about the risks they may encounter when joining the ecosystem.