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.
