(ACN Newswire) - 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
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