The recent movement of financial institutions into the cryptocurrency space has become a popular trend in many countries. Bitcoin and other cryptocurrencies as well have become a new institutional investment asset. As a result, they have drawn an ever-expanding list of financial technology, investment institutions, and banking among others.
Besides global expansion and innovation of the crypto markets, crypto exchanges are generating systems to guarantee that the Blockchain network will not crumble in the near future. The exchange platform is bridging the traditional and new digital crypto world. The bridge, however, needs to include more fiat currencies like the Hong Kong dollar into the exchange platforms. When this happens, more people will have the opportunity to trade and therefore will accelerate the adoption of the digital crypto world.
Initiatives And Actions By The Main Regulators
The European Union, Asia, and the United States serve as case-studies for the differences and similarities in Blockchain adoption into the financial sector.
In mid-October, the US SEC launched FinHub (Strategic Hub for Innovation and Financial Technology). The motive was to engage industries, investors and the public of the development in Financial Technology. Ricardo Esteves of News BTC reported that FinHub consolidated several working groups which had existed previously under the SEC. The move indicated that the US was at the forefront of understanding the pathways to rapid financial innovations and was offering a forum purposefully for analyzing Blockchain and digital assets
The European Union, on the other hand, is creating an environment to examine ways for the construction of secure Blockchain infrastructure. EU has reached out to five banks so far in this forum. The banks include Santander Bank and the BBVA.
As for Blockchain friendly countries like Singapore, Korea, Malta, and Hong Kong, they have become the epicenters of adoptions of cryptocurrencies and immense innovations courtesy of favorable governance. Countries which have prioritized innovation have been quickest to adopt new and emerging technologies. Exchange platforms have found a home in these friendly countries.
Bitcoin Taxes in Hong Kong
Hong Kong perceives the currency as a virtual commodity rather than a currency when Hong Kong regulators first reviewed it back in 2013. This view has been echoed recently by Ashley alder, the CEO of securities and future commission who has stated at a Fintech event that cryptocurrencies, utility tokens, and security tokens are virtual assets or crypto assets.
99Bitcoin’s Stephen Hay is happy that bitcoin is immune from capital gains and VAT taxes in Hong Kong. These exceptions do not, however, apply in income tax. Whether in HKD or in BTC, users are still bound to pay income taxes.
Another Means To Buy And Sell Cryptocurrencies
Consumer, an exchange platform with its base in Hong Kong announced earlier in the week that it was expanding, with the launch of the HKD withdrawal and deposit and services. It aims to expand its horizons by adding another major fiat currency to the already existing one.
According to news released on the platform’s social media pages, HKD deposit would be launched and enabled on the platform on December 7th, 2018. Upon the proper completion of the KYC (know your customer) verification process, the user will then be able to find efficient means to bind the HKD then allow for HKD deposits and trading.
The firm believes in the untapped potential of Blockchain and aims to bring more financial institutions on board in the cryptocurrency world.