Key Points:
- Tether co-founder Brock Pierce is considering returning to Hong Kong amid government efforts to attract the crypto industry.
- Pierce said the potential of Tether in Hong Kong lies in the tradefi sector.
- Hong Kong’s Securities and Futures Commission’s new rule prevents licensed exchanges from serving mainland residents.
Brock Pierce, co-founder of the stablecoin Tether and chairman of the Bitcoin Foundation, has hinted at a potential return to Hong Kong as the city aims to reestablish itself as a major hub for the cryptocurrency industry.
Tether In Hong Kong Could Make A Comeback Amid Local Efforts To Attract Crypto Investment 2
Brock Pierce Shows Potential Of Tether In Hong Kong
Pierce, who initially co-founded Tether in Hong Kong a decade ago, expressed enthusiasm for the city’s recent regulatory advancements designed to attract crypto investments.
During the Solowin and Sequire Asia Investor Summit in Hong Kong, Pierce remarked on the city’s strategic developments. “I’m enthusiastic about what’s happening in Hong Kong, which means the likelihood of something happening is good right now,” he told the South China Morning Post.
Pierce’s comments come in the wake of several prominent cryptocurrency exchanges with ties to mainland China abandoning their attempts to secure licenses in Hong Kong under the new regulations introduced by the Securities and Futures Commission (SFC). The SFC has stipulated that licensed exchanges in Hong Kong must not serve mainland residents, diminishing a major incentive for establishing operations in the city.
The city’s efforts appear to be yielding results, with the SFC recently indicating that 11 cryptocurrency exchanges, including Crypto.com and Bullish, are closer to obtaining licenses, marking significant progress since the implementation of the digital-asset rulebook.
Tether Makes Major Moves Amidst Industry Changes
Despite this, Pierce remains optimistic about potential of Tether in Hong Kong. He noted that the city’s regulatory certainty and strategic location make it a favorable environment compared to regional competitors like Singapore, Japan, and South Korea. Pierce highlighted trade finance (tradefi) as a particularly promising area for Hong Kong‘s crypto market, suggesting that a Hong Kong digital dollar stablecoin could leverage China’s supply chain advantages.
Meanwhile, Tether recently acquired a $100 million stake in Bitdeer Technologies Group, owned by Chinese billionaire Jihan Wu, with an option to purchase an additional $50 million in shares within a year.
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