Are Financial Institutions Taking Action?
The major overarching trend seen in the cryptocurrency industry recently is the movement of financial institutions as players entering this space. Bitcoin and other cryptocurrencies have become a new institutional investment asset, drawing an ever-expanding list of financial technology (Fintech), banking and investment institutions, among others.
Along with this innovation and the global expansion of the crypto world, crypto exchanges are creating systems to ensure the blockchain ecosystem remains stable. These exchanges can bridge the traditional business world to the new digital cryptocurrency world. However, this bridge requires incorporation of fiat currencies, such as the HKD (Hong Kong Dollar), into these digital exchange platforms. With the HKD joining a crypto exchange, more people will have the opportunity to trade cryptocurrencies and thus furthering the mainstream adoption of the digital crypto world.
Actions and Initiatives of the Main Regulators: United States, European Union, and Asia
The United States, the European Union, and Asia serve as strong case-studies for the similarities and differences of blockchain adoption within the financial sector. On October 18, 2018, the U.S. Securities and Exchange Commission announced the launch of the Strategic Hub for Innovation and Financial Technology (FinHub) to engage industries, investors and the public on developments in Fintech. As Ricardo Esteves of News BTC reported, FinHub consolidated several working groups which previously existed under the SEC, showing that the U.S. is taking active measures to understand the rapidly growing financial innovation pathways, as well as dedicating a forum to analyze blockchain and digital assets. Similarly, the European Union is creating a Blockchain Forum to also investigate pathways to the creation of secure blockchain infrastructures. The EU has reached out to five major banks for this forum, including BBVA and Santander Bank.
Dubbed "blockchain friendly" countries, places like Malta, Singapore, Korea and Hong Kong have become places of immense innovation and adoption of cryptocurrencies due to favorable governance. Nations which prioritize innovation tend to be the quickest to adopt new and emerging technologies. Cryptocurrency exchanges are finding their home in such "blockchain friendly" countries which makes sense for global markets of consumers as regulations steer which regions of the world are the quickest to innovate and work towards mainstream adoption.
Hong Kong views Bitcoin as a virtual commodity instead of a currency since Bitcoin was first reviewed by Hong Kong regulators in late 2013. Chief Executive Officer of the Securities and Futures Commission, Ashley Alder, stated at Fintech Week that all cryptocurrencies, security tokens, and utility tokens are "virtual assets or crypto-assets." As Steven Hay of 99Bitcoins explains, Bitcoin is exempt from "both VAT and capital gains taxes in Hong Kong. However, income tax will still apply whether a business is receiving HKD or BTC." As an exchange of virtual commodities, Coinsuper is in an opportune place to build the first truly regulated and compliant cryptocurrency exchange for the region.
With the Addition of a Second Fiat Currency, Traders See Another Means to Buy & Sell Cryptocurrencies
Coinsuper, the cryptocurrency exchange based in Hong-Kong, announced this week that the platform is expanding to support the launch of HKD deposit and withdrawal services. The exchange previously allowed for USD trading on the platform and this expansion brings another major fiat currency onto the cryptocurrency platform.
The news was released on Coinsuper's Medium Page, Twitter Account and Telegram Channels on November 28, 2018. The exchange noted that HKD deposit will launch on the platform for Coinsuper traders on December 7th, 2018. Following proper completion of the KYC (Know-Your-Customer) verification process, users will find an efficient means to bind HKD or multi-currency bank accounts to then allow for HKD deposit and trading.
The company firmly believes in the potential of blockchain and is set on bringing financial institutions into the cryptocurrency world with regulation and compliance. As stated in Coinsuper's release of their upcoming HKD deposit and withdrawal services:
"Rooted in the world's financial hub, Coinsuper puts a strong emphasis on providing customers with convenient and secure trading channels. Adding on to the consistent support of USD trading, the HKD deposit service taps into the demand of local customers for easier fiat deposit and withdrawal."
Coinsuper recognizes the need for an exchange to match innovation with much needed regulatory compliance to ensure the longevity of the crypto space. Lead by Chairwoman Karen Chen, the former President of UBS China yields over 20 years of international financial management experience. Ms. Chen has assembled a team of reputable and respected professionals to drive the mainstream adoption of cryptocurrencies. Coinsuper's crypto exchange includes diversified fiat deposit channels including HKD and USD, as well as a large selection of investors and venture capital partners who joined the exchange.
One of Coinsuper's core structures is their Coinsuper Ecosystem Network. As stated on the platform, the mission is: "to build an exchange of better capacity, compliance and security that provides the members with continuous service upgrades and push forward the building of a secure, compliant, trustable, and flourishing ecosystem for crypto asset trading." Through fiat expansion, the exchange will allow more cryptocurrency traders to conduct business transactions across crypto channels.