Ethereum

Enoch

Thing

DeFi

Status

Hong Kong is positioning itself as a leader in the global fintech landscape by focusing on crypto-related sectors such as decentralized finance (DeFi) and the Metaverse. 
Recent government-backed <a href="https://www.aof.org.hk/docs/default-source/hkimr/applied-research-report/defirep.pdf" target="_blank" rel="noopener nofollow">studies</a> conducted by the Hong Kong Institute for Monetary and Financial Research (HKIMR), part of the Hong Kong Academy of Finance (AoF), have underscored the importance of these digital frontiers in shaping the future of<a href="https://bitcoinist.com/deadline-hong-kong-kos-unlicensed-crypto-exchanges/" target="_blank" rel="noopener "> finance in Hong Kong</a>. 
The reports released on June 25 analyze the impact and potential of DeFi and Metaverse technologies, highlighting their rapid growth and emerging opportunities. 
<h2 id="hong-kong-s-push-into-defi-and-the-metaverse">Hong Kong’s Push Into DeFi And The Metaverse</h2> 
The research on DeFi revealed a notable increase in market capitalization, from $6 billion in 2021 to over $80 billion in 2023, signaling an expansion that underscores the sector’s potential. 
Despite DeFi accounting for only 4% of the overall crypto-asset market, it remains largely untapped, with roughly 71% of crypto businesses in Hong Kong surveyed not yet exploring this avenue. 
<img loading="lazy" decoding="async" src="https://i0.wp.com/s3.cointelegraph.com/uploads/2024-06/ebd1ea3a-9eaa-4e3c-881f-db65cc248b28.png?resize=1165%2C736&amp;ssl=1" alt="Respondents' involvement in the development or operation of DeFi protocols." width="1165" height="736" data-recalc-dims="1"> 
The report remains optimistic about DeFi’s capabilities to “re-organize” financial services with innovations such as “liquid staking, flash loans, and automated market makers,” promising reduced transaction times and increased financial inclusion. 
In parallel, the study on the Metaverse reveals that while <a href="https://bitcoinist.com/digital-yuan-goes-cross-border-hong-kong-unveils/" target="_blank" rel="noopener ">local financial institutions</a> have shown high interest, their engagement remains moderate. 
However, over half of the survey respondents expressed skepticism about the Metaverse’s potential, a sentiment not reflective of some Hong Kong fintech businesses’ <a href="https://bitcoinist.com/hong-kong-announces-inspection-of-crypto-platforms-offices-as-licensing-deadline-nears/" target="_blank" rel="noopener ">proactive stance</a>. 
These firms are keenly pursuing Metaverse-related developments, exploring how virtual environments can play a pivotal role in financial services. 
Enoch Fung, CEO of the AoF and executive director of the HKIMR, emphasized the intertwined nature of DeFi, the Metaverse, and broader Web3 technologies as crucial for the future of Hong Kong’s financial services industry. Fung particularly noted: 
<blockquote>
 The emerging technologies of DeFi and the metaverse, which are closely connected to the broader virtual asset and Web3 developments, will likely present various opportunities for the financial services industry in Hong Kong.
</blockquote> 
<h2 id="moves-to-cement-crypto-hub-status">Moves To Cement Crypto Hub Status</h2> 
Hong Kong’s broader strategy includes becoming a central cryptocurrency innovation and activity hub. This intention is supported by recent regulatory milestones, such as the Hong Kong Securities and Futures Commission (SFC) <a href="https://bitcoinist.com/hong-kong-regulator-approves-11-crypto-exchanges/" target="_blank" rel="noopener ">granting initial approvals to 11 cryptocurrency exchanges</a>. 
This development is part of a larger effort to issue virtual asset trading platform (VATP) licenses, which began in 2022 and aims to assist Hong Kong’s stature alongside leading global crypto hubs like Singapore and Dubai. 
Further promoting this environment, industry leaders suggest that Hong Kong could soon <a href="https://bitcoinist.com/ethereum-staking-could-be-reality-hong-kong-etf/" target="_blank" rel="noopener ">introduce staking options</a> for spot Ethereum exchange-traded funds (ETFs), enhancing the attractiveness and functionality of crypto-based financial products in the region. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/GCIl6dKs/" alt="The global crypto market on TradingView" width="2770" height="1496"> 
Featured image created with DALL-E, Chart from TradingView

Is Hong Kong the Next Big Thing in Crypto? DeFi and Metaverse Plans Unveiled

Mục lục

Bitcoinist

Các bài viết khác được xuất bản trên 27 thg 6, 2024

Secret Network and XDC Unite: A New Era for Blockchain Confidentiality and Security

It’s time for China to adjust its stance on crypto

How the Actions of Top Bitcoin Miners Are Affecting Market Prices

Marathon Digital mines $16M in Kaspa to diversify from Bitcoin

Key Reason Behind Bitcoin (BTC) Drop Revealed

Former Biden advisor: Presidential debate could clarify crypto regulatory approach

Tham gia bản tin miễn phí của chúng tôi để cập nhật tin tức về tiền điện tử hàng ngày!