Hashkey Capital’s Jupiter Zheng projects the Hong Kong crypto sector to realize significant growth by 2028. The partner in charge of research and liquid funds lauded Hong Kong’s preparedness to optimize expansion in the upcoming crypto bull run.
The Hashkey Capital partner pointed out the influx of crypto talent realized by Hong Kong as they freed the United States’ regulation by enforcement. Zheng hailed the presence of crypto talent who would drive mass innovation in Hong Kong. He observed that global crypto talent is spilling into Hong Kong, aligning with its objective of becoming a global digital asset hub.
Hong Kong’s Crypto-Positive Regulations Portrays Readiness for Bull Run
Zheng, who heads the liquid funds and research operations within the Hashkey Group’s investment firm, indicated that new web3 projects position Hong Kong to aspire for the global digital asset hub. Also, the march is made possible by the enactment of crypto-positive regulations.
Zheng illustrated that Hong Kong is now host to various projects, founders and developers teams, yielding the administrative region’s real gross domestic product (GDP). Notably, he considers the teams’ presence already boosting the capital market and banking industry’s activities.
Zheng confesses that crypto prices are yet to reflect the sophistication realized by Hong Kong’s crypto sector in the past 1.5 years. Besides, technological improvement, regulatory clarity, and inflow of global crypto talent orient Hashkey Group closer to mass crypto adoption.
Zheng backs the bullish prediction on the awareness of Hong Kong’s search for a new driver for its economy. The research and fund executive indicate that the region’s crypto sector is ready to offer the long-sought economic driver.
Zheng acknowledges the struggles exhibited by Hong Kong’s GDP, particularly following the constriction imposed by the COVID-19 pandemic. As such, he bets on crypto and Web3 becoming the new drivers of Hong Kong’s ailing GDP.
Zheng’s optimism in Hong Kong is attributed to the Hong Kong regulatory regime allowing special licensing of crypto exchanges to provide crypto-related services to retail investors. In August this year, Hashkey secured the license as the first to offer crypto exchange services targeting retail investors.
Asia’s Web3 Development Poised to Match GameFi Achievement
Although Zheng admitted his noninvolvement in Hashkey’s exchange arm, he opined that Hong Kong residents are bound to increase their demand for crypto products. Such is likely as the administration addresses investors’ concerns and amends regulatory schemes to nurture innovation and protect consumers of digital assets. For instance, Zheng hails the inclusion of legal protections and insurance as guaranteeing retail investors’ safety. Further, he indicated lifting existing hurdles, particularly mandating the usage of online wallets when seeking self-custody services. Zheng notes the ease of utilizing the Hong Kong dollars to acquire Bitcoins and other digital assets.
Zheng observed that while the current period portrays a bear market, he predicted the people’s perspective to change soon, thus ushering in the bull market. He considers the march to the bull market quicker, given the numerous opportunities to purchase crypto securely by leveraging the licensed exchanges.
Zheng projects that Hong Kong and Asia will replicate the 2021 development pattern in Web3 to that realized by GameFi within South East Asia. The period saw Axie Infinity take global pole position in most-played games.
Zheng decries the massive speculation that downed Axie. However, he considers that Asia could portray a similar development model. Besides, he considers that US and Europe-developed projects could realize a receptive market in Asia. He encouraged protocols and infrastructure from Europe, Australia and the US to pursue the Asian market.
Zheng observes a likely feverish growth that will gradually become sober, as witnessed in South East Asia GameFi. He considers the likely drivers as the improved regulated focus favouring protocols and blockchain infrastructure.
JPEX Scandal Forces Hong Kong’s SFC to Update Policies on Crypto Sale Requirements
Zheng’s optimism about Hong Kong coincides with the region’s battling the crypto exchange scandal discovered in September. The incident involved the JPEX exchange that swindled over $165 million from unsuspecting investors. The scandal is considered the worst financial incident ever witnessed in Hong Kong.
The region’s financial services and treasury secretary, Christian Hui, downplayed the debacle as hindering the government’s vision of transforming Hong Kong into the continent’s leading crypto hub. Hui assured the investors and regulators present during the Fintech Week readiness to avoid JPEX drama in future.
The Treasury secretary echoed the SFC pledge to facilitate the crypto regulations following the JPEX’s alleged fraudulent actions. The Securities and Futures Commission (SFC) pledged readiness to establish a task force tasked with policing and addressing illicit crypto exchange activities. Moreover, SFC amended the guidelines on crypto sales and requirements.
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