Hong Kong to Host CoinDesk Consensus as It Bids to Become a Crypto Hub

By Quincy Cahilig

Mar 07, 2024 08:11 PM EST

CoinDesk has announced that Consensus Hong Kong will take place at the Hong Kong Convention and Exhibition Centre in February 2025.

Foster Wright, the president of CoinDesk, highlighted Asia's significance in Web3, with Hong Kong emerging as a crucial digital asset hub. Consensus, known for uniting the cryptocurrency, blockchain, and Web3 community globally, plays a pivotal role in showcasing these developments.

Hong Kong's regulatory clarity on digital assets has garnered praise, although it lags in certain areas, like stablecoin regulations. Nevertheless, officials anticipate forthcoming changes. King Leung, Head of Financial Services and FinTech at InvestHK, emphasized Hong Kong's evolution in Web3, especially in real-world asset tokenization. Leung noted Consensus 2025's significance in displaying Hong Kong's progress, "which continues to attract entrepreneurs, talent, and investment," according to CoinDesk.

Despite challenges such as declining foreign investment and concerns about the National Security Law, Hong Kong seeks to enhance its appeal to international events and exhibitions, aligning with neighboring regions' efforts to attract visitors.

Pedestrians walk past an advertisement displaying a Bitcoin cryptocurrency token on February 15, 2022 in Hong Kong, China. (Photo : Anthony Kwan/Getty Images) 

Developing into a Crypto Hub

Hong Kong's proactive stance on Web3 and the digital asset ecosystem may reshape its position among financial institutions. Diverging from China's approach, Hong Kong openly embraces the entire cryptocurrency industry, potentially with support from Beijing. 

This positions Hong Kong as an attractive hub for crypto companies and traditional financial institutions. The city's government actively promotes its ambition to become a crypto hub, with initiatives such as the Securities and Futures Commission accepting applications for crypto trading licenses. Crypto exchange Huobi's Hong Kong arm has applied for a license, indicating industry interest.

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Serious Challenges to Hong Kong's Digital Asset Strategy 

Hong Kong's commitment extends to a dedicated task force for Web3 development, emphasizing its intention to foster the digital asset sector, according to The Diplomat. Additionally, collaborations with entities like the Central Bank of the United Arab Emirates hint at potential international regulatory standards for digital assets.

However, Hong Kong's enthusiastic embrace of digital assets also comes with challenges, notably the industry's susceptibility to misconduct. Despite reassurances from officials, the city's ambition faces obstacles, particularly in the retail sector, per Forbes.

Last year, the local JPEX platform defrauded investors of over $200 million, highlighting the risks. Despite these difficulties, Hong Kong will likely step up its crypto push because of the need for economic revival and the industry's global focus. 

With Beijing trying to control the blockchain in China, experts find Hong Kong's bid to become a fintech center intriguing.

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