Industry experts are betting on a new bull run led by Asian money as countries like Hong Kong envision becoming a crypto hub.
With the U.S. in crypto crackdown mode, and the Securities and Exchange Commission (SEC) targeting Web3 firms, Asian countries like Dubai and Hong Kong are looking more attractive as crypto hubs. South Korea is also embracing the utilities of blockchain technology by building public metaverses and welcoming Web3 firms.
Cameron Winklevoss, the co-founder of Gemini exchange, believe that the “next bull is going to start in the east.” Meanwhile, Hong Kong plans to allow retail investors to trade certain cryptocurrencies under the new licensing regime on Jun. 1.
Hong Kong Retailers May Soon Trade Cryptocurrencies
Paul Chan, the Financial Secretary of Hong Kong, has committed to working towards making the country a crypto hub. And of late, the government has been taking various steps for crypto adoption.
According to a Bloomberg article, Hong Kong regulators have released a consultation paper with a deadline of March 31. It will explore the framework for allowing retailers to trade large market-cap cryptocurrencies.
The criteria are that the “coins should be included in at least two acceptable, investible indexes from independent providers, one of which should have experience in the traditional financial sector.”
As the country tries to welcome retail trading of cryptocurrencies, Justin Sun’s Huobi exchange applied for a crypto trading license in Hong Kong.
Billionaires Bet Big on Asian Bull Run
Justin Sun, the founder of Tron and advisor at Huobi, has been vocal about the bull market led by Chinese money on various occasions. He further believes a partnership between Huobi and Tron will drive crypto adoption in Hong Kong and China.
Brian Armstrong, the founder of Coinbase, believes that with countries like Hong Kong leading the crypto space, America will lose its status as a financial hub. Also, Jeff Dorman, the Chief Investment Officer at Arca, told Bloomberg that new Web3 firms are “not even bothering with the U.S.”
Renowned Economist Predicts U.S. Dollar Will Lose its Dominance
While the U.S. lags in crypto adoption, the economist Nouriel Roubini predicts that dollar will lose its position as the dominant currency. He believes that China’s renminbi and stablecoins will challenge the unipolar regime of the dollar.
The economist predicted the infamous housing market crash of 2008 and assumed the title of “Dr. Doom.”
But what about the dominance of USD-based stablecoins? The largest stablecoins, such as USDT, USDC, and BUSD, are backed by USD. But last week, the New York Department of Financial Services ordered BUSD issuer Paxos to stop issuing new stablecoins.
This development led Changpeng Zhao, the founder of Binance, to announce that they are exploring non-USD-based stablecoins. The question is, with regulatory troubles brewing in the U.S., will the dominance of USD-based stablecoins also start to decrease?
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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.