What makes Asia a key driver of the next [crypto] bull run
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It appears that the United States and European countries are losing their dominant position in the cryptocurrency market. This is because regulators have taken aggressive measures that have led crypto investors to shift their focus towards the Asian region.
In late February, Cameron Winklevoss, co-founder of the Gemini cryptocurrency exchange and founder of Facebook, made a bold statement. He claimed that the United States was missing out on the opportunity not only to shape the future global financial infrastructure but to be a part of it altogether.
My working thesis is that the next bull run is going to start in the East. It will be a humbling reminder that crypto is a global asset class and that the West, really the US, has always had only two options: embrace it or be left behind,tweeted Winklevoss.
Initially, it seemed like Winklevoss's remarks were simply a reaction to the SEC's policy of suppressing cryptocurrencies. However, just a few hours later, news broke that Hong Kong was preparing to legalize cryptocurrencies.
What does it take for Hong Kong to become a global crypto hub?
Starting from June 1st, Hong Kong will allow retail investors to trade cryptocurrencies, including those that lead the global market capitalization rating. The exact list of these cryptocurrencies has not yet been disclosed.
Mandatory licensing of cryptocurrency exchanges will be required. Huobi, a cryptocurrency platform led by Justin Sun, the founder of the Tron blockchain, is one of the first platforms to apply for a license. Sun is confident that the next bull cycle will come from China, and he is moving to Hong Kong to be closer to the epicenter of events.
That's why I am planning to move to Hong Kong. The Chinese crypto market is on the rise! Several analysts predict China will dominate the crypto bull markets in the future, with TRON and HuobiGlobal leading Hong Kong's development,Justin Sun wrote.
China's stance on Hong Kong's crypto legalization
Despite China's ban on cryptocurrency trading that was adopted in 2021, there are indications that the country is unofficially supporting Hong Kong's efforts to develop its crypto sector. This has encouraged cryptocurrency companies that left China to prepare to return to the region.
Platforms such as Bitget, Gate.io, and OKX have already announced plans to obtain a license in Hong Kong. The list of companies interested in working there is growing daily.
However, there is still no indication that China is ready to lift its ban on cryptocurrency trading on the mainland. The Chinese government is implementing its "one country, two systems" policy, allowing Hong Kong to develop its crypto hub while Beijing watches from the sidelines.
Asia's crypto ambitions
Hong Kong is not the only city in Asia investing in the cryptocurrency sector. The United Arab Emirates, as well as Dubai, Bahrain, and Abu Dhabi, are also working to legalize cryptocurrencies and become global centers for the legal use of technology. Representatives of the industry are actively involved in this process.
The cryptocurrency market in Asia is showing signs of recovery after a long crisis. Zipmex, a Southeast Asian cryptocurrency exchange, experienced a credit crisis last year but is now preparing to resume withdrawals after completing an investment deal.
Similarly, DBS, a cryptocurrency exchange launched by Singapore's largest bank, announced that its cryptocurrency trading volume had doubled in 2022. These developments suggest that the US may be missing an opportunity to become a leader in the fourth industrial revolution, as Asia takes the initiative in the cryptocurrency industry.
