In a strategic move to boost Asia-Pacific cryptocurrency adoption, Zodia Custody, supported by Standard Chartered (OTC:SCBFF), Northern Trust (NASDAQ:NTRS), and SBI Holdings, is set to introduce its robust crypto storage solutions in Hong Kong. The expansion is part of Zodia's broader strategy that includes Japan, Singapore, and Australia.
Julian Sawyer, CEO of Zodia, noted that institutional clients are the primary drivers of demand in Hong Kong. The local authorities view digital assets as the future and are keen on positioning Hong Kong as a thriving hub in this burgeoning industry. This progressive stance towards digital assets comes despite China's ban on bitcoin trading and mining.
The Hong Kong Securities and Futures Commission (SFC) recently introduced a regulatory framework for digital assets. The guidelines mandate exchanges to operate within a regulated framework. Only two firms - OSL Digital and Hash Blockchain - have so far secured licenses from the SFC to provide services in Hong Kong.
Zodia is currently in negotiations with the SFC and the Hong Kong Monetary Authority for potential regulatory approval. Once approved, Zodia will initially serve Hong Kong clients with a select range of crypto assets.
This new regulatory regime has attracted interest from major players in the crypto industry. Crypto giants including Binance-backed HKVAEX and OKX are considering establishing their institutions in the region. These developments underline the growing interest from institutional players in the region's digital asset market, which is seen as a positive sign for the future of cryptocurrency adoption in Asia-Pacific.
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