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Hong Kong, according to Sam Bankman-Fried, may become Asia’s Web 3 centre

In a webinar at Hong Kong’s FinTech Week 2022 on Monday, the founder of cryptocurrency exchange FTX, which left the city in 2021, predicted that the city could become a Web3, blockchain, and cryptocurrency centre.

“If you look at what the crypto hubs will be in the world, I think the Bahamas looks like one of them, Dubai looks like one of them, but if you look at the East, it’s not as obvious”, said Bankman-Fried. 

“It could be Singapore, could be somewhere like Busan in Korea, but I think there is a real chance it ends up being Hong Kong,” he added. 

When Bankman-Fried relocated FTX from Hong Kong to the Bahamas in 2021, he blamed regulatory uncertainty.

The Hong Kong government announced in a policy statement on Monday that it would begin a consultation on allowing crypto trading by retail investors as part of its effort to become a hub for digital assets.

Despite the fact that regulation and Covid restrictions drove many crypto-related businesses out of Hong Kong, according to Bankman-Fried, the government’s action portends better times ahead for the industry in the area.

Singapore is now thinking about tightening its own crypto regulations for retail investors after becoming a destination for bitcoin companies fleeing Hong Kong, such as cryptocurrency exchange Crypto.com.

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