According to Arthur Hayes, the legalization of cryptocurrencies in Hong Kong will contribute to the growth

Former BitMEX CEO calls possible reason for the start of a new bull market

27.10.2022 - 09:45

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2 min

What’s new? Former BitMEX CEO Arthur Hayes has published an essay titled Comeback, in which he said that Hong Kong could become a global hub for the development of cryptocurrencies. Hayes believes that the legalization of digital assets in this region will be a trigger for the growth of their value.

The full version of the essay

What other statements have been made? According to Hayes, Hong Kong can become an intermediary between China and the rest of the world in the adoption of cryptocurrencies. In his essay, the author emphasized that the history of cryptocurrency markets is centered in Greater China (which includes Mainland China, Hong Kong, Taiwan, and Macau). For example, margin trading and perpetual swaps were launched by Hong Kong-based exchanges Bitfinex and BitMEX. Binance, the largest cryptocurrency exchange by trading volume, is also based in Greater China.

According to Hayes, the market sees changes in the approach to cryptocurrencies. He noted that Hong Kong intends to legalize cryptocurrencies, non-fungible tokens (NFTs), and metaverses. This move could lead to an influx of capital to the region from Chinese investors. This, in turn, could lead to a new bull cycle.

In October, it became known that the Hong Kong government considers imposing its own rules to regulate cryptocurrencies without the participation of China, where this type of asset is completely banned. Among other initiatives, the Securities and Futures Commission proposed to allow the trading of digital assets for retail investors.

Hong Kong also unveiled its prototype for a national digital currency. The source code of the Aurum project is available to central banks that are members of the Bank for International Settlements. The developers also plan to issue a stablecoin backed by the digital Hong Kong dollar.

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